(CBS DETROIT) — A 32-year-old man has pleaded guilty to stealing about $850,000 as part of a COVID-19 pandemic loan fraud scheme.
Ryan Carruthers of Commerce Township pleaded guilty to one count of wire fraud, according to the Justice Department. Officials say Carruthers participated in a scheme to obtain secure loans from two relief systems run by the Small Business Administration.
In April 2020, Carruthers began filing programs on behalf of several small businesses it claimed to own and control. In one year, it introduced 12 programs through the paycheck coverage program, according to a news release. He also submitted an application to the Economic Disaster Loan Program.
About $851,963 was taken, which Carruthers used to pay his mortgage, buy a private vessel and pay for his private expenses, according to the Justice Department.
Although Carruthers claimed his corporations had 3 to 15 employees, federal officials say they were “shell corporations” that were not in operation.
“Ryan Carruthers stole nearly a million dollars from systems designed to help our network through an unprecedented national crisis. Every dollar that went to Mr. Carruthers is a dollar that didn’t go to a small business that needed help during the pandemic,” the United States said. Attorney Ison said in a statement, “My workplace takes pandemic fraud very seriously and we will continue to devote resources to bringing those who have perpetrated such fraud to justice. “
Sentencing is scheduled for December 5.