FLORIDA – A Florida man has pleaded guilty to a million-dollar COVID relief fraud scheme.
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Al Clint LaRoche, 43, of West Palm Beach, pleaded guilty to two counts of bank fraud on January 30, said United States Attorney Roger B. Handberg.
He faces a maximum penalty of 30 years in prison for each count. A sentencing date has not yet been set.
According to the plea agreement, between April 2020 and April 2021, LaRoche submitted false and fraudulent First Draw and Second Draw Paycheck Protection Program (PPP) loan applications to a financial institution through a financial services and technology company based in Naples for his business, Bornwild, LLC.
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The loan applications reportedly contained numerous false representations and certifications, including Bornwild’s average monthly payroll, the number of employees, and that the loan funds would be used for authorized purposes.
In addition, to qualify for each PPP loan, and in support of his fraudulent loan applications, LaRoche is said to have submitted fake and fictitious quarterly federal tax returns (IRS Form 941s) for Bornwild that contained false representations about the business’s quarterly payroll expenses.
According to the U.S. Attorney’s Office for the Middle District of Florida, false and fraudulent representations caused the PPP lender to approve and fund a First Draw and Second Draw PPP loan, resulting in the deposit of approximately $1,078,652.50 into bank accounts LaRoche controlled.
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LaRoche then unlawfully used the funds for unauthorized purposes and for his own personal enrichment, including the purchase of a Mercedes Benz SUV, jewelry, hotel, and travel stays, various retail purchases, and more than $350,000 in cash withdrawals, the U.S. Attorney’s office said.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Trent Reichling.
