FLORIDA – A married couple from Fort Myers has been indicted for an alleged $3.4 million COVID relief fraud scheme, the U.S. Attorney’s Office for the Middle District of Florida (USAO) has announced.
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United States Attorney Roger B. Handberg announced on Friday the return by a grand jury of an indictment charging Timothy Craig Jolloff, 46, and Lisa Ann Jolloff, 56, with wire fraud, conspiracy to commit money laundering, and illegal monetary transactions.
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 the proceeds of the offense.
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According to the indictment and other court documents, between April and March 2021, Timothy Jolloff and his wife, Lisa Jolloff, submitted false and fraudulent Economic Injury Disaster Loan (EIDL) and Paycheck Protection Program (PPP) loan applications to the Small Business Administration, as well as PPP approved lenders. Reportedly, in the PPP loan applications, the Jolloffs falsely represented the number of employees and average monthly payroll for the applicant businesses.
The Jolloffs also are 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. 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 reportedly misrepresented the number of employees of the EIDL applicant businesses.
Moreover, in loan documents signed and submitted by Timothy Jolloff for EIDL loans, he mispresented that EIDL proceeds would be used solely for working capital and to alleviate economic injury, said the USAO.
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According to prosecutors, the Jolloffs’ false and fraudulent representations caused the Small Business Administration and PPP lenders to approve and fund 11 EIDLs, eight PPP loans, and EIDL Advances, totaling approximately $3,403,265.
The Jolloffs reportedly conspired to unlawfully use PPP and EIDL funds to purchase three pontoon boats totaling more than $300,000, real estate in Fort Myers 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 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 Jolloffs had obtained COVID relief money, said the USAO.
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The United States Secret Service investigated this case. Assistant United States Attorney Trent Reichling is prosecuting it.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless and until proven guilty.
