Introduction to PPP Fraud

A Dolton police officer is accused of fraudulently receiving thousands of dollars in federal Paycheck Protection Program loans for his Off Duty Security business.

Charges Filed Against the Officer

William Frederick Reed of Hazel Crest was charged Monday with providing false statements to the federal Small Business Administration, bankruptcy fraud, concealment or destruction of bankruptcy records, failure to file a tax return and perjury on tax returns.

What is PPP?

PPP was a federal loan program implemented by the SBA to provide financial relief to small businesses and nonprofits during the COVID-19 pandemic.

Allegations Against Reed

Prosecutors said Reed fraudulently applied for three PPP loans by falsifying the monthly payroll of his Off Duty Security private security business. They said he received $5,862 in June 2020, $5,862 in March 2021 and $5,860 in May 2021.

Ineligibility for PPP Loan

Based on his 2019 income tax return, Reed would not have qualified for a PPP loan, prosecutors said.

Tax Return Discrepancies

Reed, who is also a full-time police officer with the Dolton Police Department, also allegedly lied about his income on his 2021 tax return. He told the IRS his total income that year was $49,739, though he actually made much more, prosecutors said.

Bankruptcy Filing

Prosecutors said that Reed also filed for bankruptcy in March 2022 and provided fake documents to hide the fact that he had gotten the PPP loans and failed to file an income tax return last year despite making $189,092 as a police officer.

Response from the Police Department

The Dolton Police Department did not respond to a request for comment.

Conclusion

The allegations against William Frederick Reed highlight the importance of ensuring the integrity of federal loan programs and the need for individuals to comply with tax laws and regulations. The consequences of fraud and perjury can be severe, and it is essential for individuals to be truthful in their dealings with government agencies.

FAQs

• What is the Paycheck Protection Program (PPP)?
  The Paycheck Protection Program (PPP) is a federal loan program implemented by the Small Business Administration (SBA) to provide financial relief to small businesses and nonprofits during the COVID-19 pandemic.
• What are the charges filed against William Frederick Reed?
  William Frederick Reed has been charged with providing false statements to the federal Small Business Administration, bankruptcy fraud, concealment or destruction of bankruptcy records, failure to file a tax return, and perjury on tax returns.
• How much did Reed allegedly receive in PPP loans?
  Reed allegedly received $5,862 in June 2020, $5,862 in March 2021, and $5,860 in May 2021, for a total of $17,584.
• What is the significance of Reed’s bankruptcy filing?
  Reed’s bankruptcy filing is significant because he allegedly provided fake documents to hide the fact that he had received PPP loans and failed to file an income tax return last year despite making $189,092 as a police officer.