FLORIDA – A Fort Myers couple is facing arrest and charges for allegedly orchestrating a $2 million COVID relief fraud scheme.
United States Attorney Roger B. Handberg has announced the arrest and unsealing of a criminal complaint charging Timothy Craig Jolloff, 46, and Lisa Ann Jolloff, 56, with one count of conspiracy to commit money laundering and one count of illegal monetary transactions.
Timothy Jolloff is also charged with one count of wire fraud.
If convicted, each faces a maximum penalty of 10 years in federal prison on each of the charges. Timothy Jolloff faces an additional maximum penalty of 20 years in federal prison for the wire fraud offense, said the U.S. Attorney’s Office for the Middle District of Florida (USAO).
According to the complaint, between April and May 2020, Timothy Jolloff submitted false and fraudulent Economic Injury Disaster Loan (EIDL) and Paycheck Protection Program (PPP) loan applications to the Small Business Administration (SBA), as well as a PPP-approved lender. In PPP loan applications and loan documents, Timothy Jolloff is said to have 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.
Moreover, the USAO said in loan documents signed and submitted by Timothy Jolloff for EIDL loans, he mispresented that EIDL proceeds would be used solely as working capital and to alleviate economic injury.
According to prosecutors, Timothy Jolloff’s false and fraudulent representations caused the SBA and a PPP lender to approve and fund 11 EIDLs and 6 PPP loans, totaling approximately $2.14 million.
Timothy Jolloff and his wife, Lisa Jolloff, then reportedly conspired to unlawfully use PPP and EIDL funds to purchase three pontoon boats for more than $300,000 total, real estate in Indiana, home furnishings, outdoor kitchens for their homes, a 2020 Polaris UTV, as well as jewelry, and two dogs.
The USAO said the couple also fraudulently used more than $600,000 in EIDL funds to purchase a furniture business in Indiana and a landscaping business in Sarasota, which had no connection to the businesses for which the couple had obtained COVID relief funds.
A criminal complaint is merely an allegation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated by the United States Secret Service. It is being prosecuted by Assistant United States Attorney Trent Reichling.
