Staff, Wire Reports
A former Bluffton couple, now living in Fort Myers, Florida, has been indicted in a $3.4 million Covid relief fund scheme.
A grand jury returned an indictment earlier this month charging Timothy Craig Jolloff, 46, and Lisa Ann Jolloff, 56, with wire fraud, conspiracy to commit money laundering, and illegal monetary transactions in connection with Covid Relief fund fraud. Timothy Jolloff is also charged with multiple counts of bank fraud.
The indictment also notifies the defendants that the United States intends to forfeit a 2019 GMC truck and approximately $3,403,265, which are alleged to be traceable to proceeds of the offense.
According to a press release from the United States Attorney Office, Middle District of Florida, between April and March 2021, the Jolloffs allegedly submitted false and fraudulent Economic Injury Disaster Loan and Paycheck Protection Program loan applications to the Small Business Administration, as well as PPP approved lenders.
In the PPP loan applications, the Jolloffs allegedly falsely represented the number of employees and average monthly payroll for the applicant businesses. The Jolloffs also falsely represented and certified that PPP funds would be used to retain workers and maintain payroll or make mortgage interest payments, lease payments, and utility payments.
In EIDL applications, Timothy Jolloff allegedly misrepresented the gross revenue and cost of goods sold for the applicant businesses for which he sought EIDL funds. He also is charged to have misrepresented the number of employees of the EIDL applicant businesses.
Moreover, in loan documents signed and submitted by Timothy Jolloff for EIDL loans, he allegedly mispresented that EIDL proceeds would be used solely for working capital and to alleviate economic injury.
The Jolloffs’ alleged false and fraudulent representations caused the Small Business Administration and PPP lenders to approve and fund 11 EIDLs and 8 PPP loans, as well as EIDL Advances, totaling approximately $3,403,265. The Jolloffs then allegedly conspired to unlawfully use PPP and EIDL funds to purchase three pontoon boats totaling more than $300,000, real estate in Fort Myers, Florida and Angola, Indiana, home furnishings, outdoor kitchens for their homes, a 2019 GMC truck, a 2020 Polaris UTV, as well as jewelry, and two dogs.
The Jolloffs also allegedly fraudulently used more than $600,000 in EIDL funds to purchase a furniture business in Indiana and a landscaping business in Sarasota, Florida, which had no connection to the businesses for which the Jolloffs had obtained COVID relief money.
Timothy Jolloff was involved in a number of business entities in Wells County over the past 25 years, including a period as a personal financial advisor, and as an owner/operator of several FedEx contract delivery routes. He and his former wife owned and operated the Print Shop and Business Supplies business and he also had opened a furniture store here.
The Jolloffs made their initial appearances June 16 in Fort Myers federal court. The indictment was released July 14. The case was investigated by the United States Secret Service. It is being prosecuted by Assistant United States Attorney Trent Reichling. There was no attorney of record listed for the couple in court documents.
Timothy Jolloff’s charges (and the potential maximum federal prison sentences per count) include 11 counts of wire fraud (20 years), seven counts of bank fraud (30 years), four counts of illegal monetary transactions (10 years) and conspiracy to commit money laundering (10 years).
Lisa Jolloff’s charges and penalties include wire fraud (20 years), four counts of illegal monetary transactions (10 years) and conspiracy to commit money laundering (10 years).
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