The CARES Act Paycheck Protection Program (PPP) was designed to provided funds to existing small businesses to help keep their employees on payroll during the COVID-19 crisis. Key words in this statement loan criteria of “existing” and “keep.” The U.S. government was trying to help small businesses keep their employees employed during the Pandemic. But Michael Fullerton and Tiffany Fullerton had other plans for those funds. Like opening a marijuana dispensary.
While Fullterton and Fullteron did use one existing business to apply for a PPP loan, they also submitted PPP loan applications using three dormant and expired business names. A failed business deemed not worthy of relicensing, finds new value when filing fraudulent pandemic loans! The Fullerton’s lied on the applications about the business’s status along with falsified payroll records, banking details, and other financial documents.
The Fullerton’s fraudulently received approximately $3.5 million in PPP funds. Which they used to start businesses in Oklahoma consisting of a marijuana grow and dispensary, a bar and grill, and an auto/boat repair shop. Any remaining funds from startup ventures were used to purchasing luxury watches, cars, and other goods. Which created a money trail for the IRS Criminal Investigators to follow eventually.
On October 4, 2024, Michael Fullerton was sentenced to twenty-three years and eight months, in federal prison for eleven counts of fraud, while Tiffany Fullerton was sentenced to 9 years in federal prison. The couple were ordered to pay over $3 million in restitution.
The IRS Criminal Investigation and Treasury Inspector General for Tax Administration investigated the case.
Today’s Fraud of The Day is based on article “Georgetown couple sentenced for COVID-era PPP loan fraud” published by KVUE News on October 4, 2024.
A Georgetown couple has been sentenced to federal prison for their roles in a pandemic-era Paycheck Protection Program (PPP) fraud scheme.
Michael Fullerton, 51, and his wife, 48-year-old Tiffany Fullerton, were sentenced to a combined 32 years in federal prison for submitting six fraudulent PPP loan applications that exceeded $3.5 million. The couple, along with two additional co-conspirators, used one existing and three dormant and expired business names to submit the six fraudulent PPP loan applications. Five of those applications were funded, allowing the group to receive approximately $3 million in PPP funds.