A Naperville man is one of three people charged with filing fraudulent documents to obtain more than $2.75 million in small business loans under federal COVID-19 relief programs.
David L. Sullivan II, 49, was charged with wire fraud in connection with money obtained through Paycheck Protection and Economic Disaster Loan programs, a press release from the office of the US Attorney in Chicago.
The indictment accuses Sullivan of working with Samuel W. Jackson, 42, and Elizabeth A. Chervinko, 41, both of Chicago, in 2020 to submit false applications and supporting documents to lenders, suppliers lending services and the US Small Business Administration on their own behalf. and the names of five companies, according to the statement.
Two of the companies were based in Illinois, Top Flight Real Estate LLC and Tips@170 Inc., and three in Montana, Dream Builder LLC, Ordained Destination LLC and Ordained Real Estate LLC, according to the release.
The materials submitted “contained materially false statements about the defendants’ companies, including the number of alleged employees, income and payroll amounts, and other expenses,” according to the indictment.
They were able to secure $2.49 million in PPP loans and about $256,000 from the SBA in Economic Disaster Loan Program funds, which they would have used to purchase real estate and lease or purchase automobiles. luxury, according to the press release.
Sullivan and Chervinko, also charged with wire fraud, will be arraigned Aug. 17 in federal court in Chicago.
Jackson pleaded not guilty at his arraignment Tuesday to five counts of wire fraud and three counts of money laundering.
Under federal CARES law, a PPP loan allows interest and principal to be forgiven if a business spends a certain amount of the proceeds on essential expenses, such as payroll, rent and utilities, the statement said. . The Economic Disaster Loan Program provides loan assistance or grants to cover working capital and other operating expenses.