By MARK MILLER
A former Bluffton couple now living in Fort Myers, Florida, has entered guilty pleas in a $3.4 million COVID-19 relief fund scheme.
Timothy Craig Jolloff, 47, and Lisa Ann Jolloff, 57, were indicted by a grand jury in July 2023 on multiple counts of wire fraud, bank fraud and illegal monetary transactions as well as one count of conspiracy to commit money laundering. According to court documents from the United States Attorney Office, Middle District of Florida, the Jolloffs 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 between April and March 2021.
After several continuances, the case had been set for trial May 1, 2024, but a plea hearing was then held May 6, at which Timothy Jolloff entered a guilty plea on one count of wire fraud, one count of bank fraud and one count of illegal monetary transactions. Lisa Jolloff pled guilty to one count of wire fraud involving the loan applications. The original indictment included 11 counts of wire fraud, seven counts of bank fraud and four counts of illegal monetary transactions against Timothy Jolloff. Lisa Jolloff had been charged with one count of wire fraud and four counts of illegal monetary transactions. The charge of conspiracy to commit money laundering had applied to both.
A sentencing hearing has been set for Aug. 23 for the couple at the United States District Court in Fort Myers. The potential maximum federal prison sentences for the counts are: wire fraud, 20 years; bank fraud, 30 years; and illegal monetary transaction, 10 years.
The 23-page original indictment dated July 12, 2023, detailed that 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 were charged with falsely representing and certifying 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 was charged with misrepresenting 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’ representations caused the Small Business Administration and PPP lenders to approve and fund 11 EIDLs and eight 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 were also charged with fraudulently using 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.
miller@news-banner.com
