Uncle Sam isn't playing around when it comes to those Paycheck Protection Program (PPP) loans. They were instituted during the quarantine last year to help small businesses stay afloat, but by the thousands, people began taking advantage of the government's business loan. We're previously reported on NFL players, singers, and reality stars being hit with serious prison time and fines for falsifying records or spending the money on personal affairs. In Phoenix, it has been reported that a police officer has been accused of cheating the system out of over $1 million.
According to the Phoenix New Times, Officer Toni Richardson collected $1,276,500 in the forgivable loan for her non-profit organization, The Lotto Club.
However, she and her business partner stand accused of using the finances for personal gain. The Lotto Club is reportedly listed as a "social club" that acts as a charitable effort for veterans and on the application for the loan, Richardson claimed she employed 85 people. Yet, prior to the application, The Lotto Club did not list any employees, at all, nor did it even have a payroll. The bank account for the non-profit was at zero dollars.
Richardson's business partner, Blu Mitchell, took out a $200,000 check in his own name, as well as a later $25,000 transfer. Mitchell, it appears, runs multiple nonprofits in the Phoenix area, including Sigma C.U.T.S., which purports to do a wide variety of philanthropic work across the U.S.
Reports state that Richardson has since resigned following the charges of bank fraud, conspiracy, and money laundering. Because she stepped down, her department has stated they do not plan on launching an internal investigation.
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