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Man who fraudulently obtained nearly $200,000 in SBA loans pleads guilty

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The list of convictions continues to grow among people who have tried to use federal pandemic loans as personal piggy banks.

An Oklahoma man who received $192,071 from the Small Business Administration after he fraudulently applied for an Economic Disaster Disaster Loan (EDIL) and a Paycheck Protection Program (PPP) loan has pleaded guilty in front of a federal court, US attorney Clint Johnson said.

Scott Wayne Jarman, 49, of Coweta, pleaded guilty to two counts of misrepresentation to the United States Small Business Administration.

Jarman faces a maximum statutory penalty of five years in prison and a maximum fine of $250,000. A federal judge will determine appropriate sentences and restitution amounts at the defendants’ sentencing hearing, which will be set by the court.

In his plea agreement, Jarman said he submitted false statements and documents in loan applications to the Small Business Administration on behalf of the company SKT Concessions, which he claimed to own and operate. He further stated that he knowingly certified all information in the applications and supporting documents to be true and correct when he knew the information to be incorrect.

On March 30, 2020, Jarman misrepresented SKT dealerships when applying for an economic injury disaster loan, to include when the business was operational, gross revenues, operating expenses, annual operating costs, cost of goods sold and number of employees. Jarman was able to secure a loan in the amount of $146,171 based on the information submitted.

On April 24, 2020, Jarman misrepresented the business when applying for a Paycheck Protection Program loan, to include gross sales, cost of goods sold, gross profit and expenses car and truck. Following the fraudulent information, he obtained a loan in the amount of $45,900.

To learn more about the Department of Justice’s COVID response and to report COVID-19 fraud, visit: https://www.justice.gov/coronavirus. For more information about the Criminal Division’s enforcement efforts on PPP fraud, including court documents from important cases, visit the following website: https://www.justice.gov/criminal-fraud/ ppp-fraud.