SALT LAKE CITY (ABC4) – Timothy Gibson, a Utah resident and dual operator of Creative Investment Group LLC and Polaris Investment Group LLC, faces three charges after he allegedly lied about PPP loans and advised his clients to do so also.
Currently, Gibson faces one count of bank fraud and two counts of making a false statement to a bank.
For those unaware, the SBA Paycheck Protection Program (PPP) was created after the enactment of the CARES Act in March 2020, which enacted several temporary programs and supported the expansion of others. programs to deal with the COVID-19 epidemic. . In short, PPP is a loan opportunity to help small businesses keep their employees on the payroll.
Gibson’s crimes date back to May 2020 when he hatched a scheme to defraud Mountain America Credit Union (MACU) through the PPP loan program. Additionally, Gibson allegedly informed 25 of its clients that they could apply for and obtain PPP loans using false information in order to “grow their business,” when growing a business was not a permitted use of funds. PPP loan.
On May 11, 2020, Gibson reportedly applied for a PPP loan from MACU for $166,600, falsely informing the organization that Creative Investment Group LLC had eight employees when it only had one, and that the company had an average monthly payroll of $66,666.67 when there was none. monthly wage bills in reality.
On the same day, Gibson applied for another PPP loan of $208,300 after informing MACU that Polaris Development Group LLC had 10 employees when it had only one, and the administration had average monthly payroll expenses. of $83,333.33 when, again, the organization had no monthly salary. wage costs.
A few days later, on May 18, 2020, Gibson submitted a PPP loan through MACU on behalf of JW and his company 17 Paths LLC, although the application was unfunded.
As a result of his crimes, Gibson was ordered to forfeit all property obtained through proceeds he earned through false PPP loan claims.
Currently, a financial judgment equal to the value of any property that cannot be revoked is being worked out.