Texan charged with fraud, false statements in obtaining more than $2 million in PPP loans

A Texas man was charged late last week with wire fraud and making false statements in order to obtain fraudulent loans of more than $2 million from a federal program meant to assist businesses affected by the coronavirus crisis, federal law enforcement authorities said.

The U.S. Attorney for the Western District of Texas, along with representatives of the FBI, IRS, and office of the inspector general for the Federal Deposit Insurance Corp. (FDIC), on Thursday said Michael George McQuarn, 51 of Austin, Texas, was charged with allegedly defrauding the U.S. Small Business Administration’s (SBA) Paycheck Protection Program (PPP).

The agencies said McQuarn was charged with wire fraud and making false statements to the SBA. According to the complaint, allegedly beginning in April 2020, McQuarn began a scheme to submit fraudulent applications and supporting paperwork of two fictitious companies he created – Vantastic Voyages, LLC and Happy Days Movers, LLC – to secure SBA-backed PPP loans. The agencies said McQuarn claimed the funds were for legitimate business purposes when, in fact, the money was used for his own personal use, including purchasing a 26’ Pavati Wake Boat and a Rolls Royce. The agencies also alleged that McQuarn fraudulently received in excess of $2 million in PPP funds.

A criminal complaint is a charge; it is not evidence of guilt, the agencies added.

Federal Complaint Filed Against Austin Man for Multi-Million Dollar Fraud Scheme Related to the SBA Paycheck Protection Program During COVID-19 Pandemic