WEST PALM BEACH, Fla. — A West Palm Beach man pleaded guilty to two counts of bank fraud involving more than $1 million from the Paycheck Protection Program loan program, the Department of Justice announced Tuesday.
Al Clint LaRoche, 43, faces a maximum penalty of 30 years in prison for each count after his plea in Florida Middle District Federal Court in Fort Myers. A sentencing date has not yet been set.
Between April 2020 and April 2021, LaRoche submitted false and fraudulent First Draw and Second Draw PPP loan applications to a financial institution through a financial services and technology company based in Naples for his business – Bornwild, LLC, according to the DOJ.
Prosecutors said loan applications contained numerous false representations and certifications, including Bornwild’s average monthly payroll, number of employees and loan funds would be used for authorized purposes.
To qualify for each PPP loan, LaRoche submitted fake and fictitious quarterly federal tax returns for Bornwild that contained false representations about the business’s quarterly payroll expenses, DOJ said.
LaRoche received $1,078,652.50 into bank accounts, and 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, various retail purchases and more than $350,000 in cash withdrawals, DOJ said.
PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent for payroll costs, interest on mortgages, rent and utilities. Interest and principal are forgiven if the business spends the proceeds on these expenses within a set time period.
The amount of a PPP loan is approximately equal to 2.5 times the applicant's average monthly payroll costs. In some cases, an applicant may receive a second draw typically equal to the first.
PPP, which had roughly $800 billion in funding, is part of the the Coronavirus Aid, Relief and Economic Security (CARES) Act enacted March 2020.
