Liberty County pair accused of likely on lush trip with fraudulent money from CARES Act plan

A Liberty County pair faces federal prosecution in Texarkana for a COVID relief rip-off, allegedly submitting hundreds of phony bank loan apps for clients and pilfering $1.3 million from govt coffers.

Clifton Pape and Sally Jung, of My Buddy Financial loan, then went on a paying spree with their unlawful earnings, together with a go cart tour in Conroe and glitzy vacation at a San Antonio resort, according to court docket files submitted in the Japanese District of Texas.

Pape and Jung, whose organization was registered to an address in Houston, are accused of charging candidates far more than $1,000 to fill out their paperwork for a $10,000 agricultural grant by the Modest Business enterprise Administration’s CARES Act funding, aimed at businesses harmed by the coronavirus epidemic. Rather, their financial loan company created cookie cutter applications for each and every of the compact organization applicants that had been fraudulent, officers mentioned.

Investigators say the few filed 222 Economic Injuries Catastrophe Loan programs in June and July for businesses that all took place to have specifically 10 personnel — the sum demanded to unlock the maximum $10,000 via the system. The SBA granted $10,000 progress cash to 130 of all those candidates for a overall of $1.3 million.