Prosecutors revealed that a Virginia man lied and made perjured documents to obtain a $2.5 million loan, supposedly intended to help keep people employed amid the COVID-19 pandemic, Tuesday.
It was found out later on that the man used the money to purchase his own airplane and a luxury car.
According to the Eastern District of Virginia's US Attorney's Office, the man identified as Didier Kindambu from Leesburg obtained two loans, which amounted to about $2,501,753, then used the money for his personal gain.
The 48-year-old businessman was accused of using the two businesses that he owned in his scheme. Reports stated that he made fraudulent payroll documents for each company in order to qualify for the loan, Yahoo! Finance reported.
Through the Paycheck Protection Program (PPP) under the CARES Act, loans were established to aid businesses struggling due to the pandemic. The goal of the loans is to help these businesses pay their employees' wages to curb the rate of unemployment.
Based on his LinkedIn page, Kindambu was listed as Papillon Air Inc.'s president. The company offers cargo and charter and is based at Leesburg Executive Airport. However, a criminal complaint also stated that Kindambu also applied for loans under the company Papillon Holdings.
Moreover, the criminal complaint stated that the amount of money spent by the accounts of the company did not coincide with the records from the state and the feds.
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According to prosecutors, Kindambu started to pay staff in June via a company called Papillon Maintenance Services; however, the employees' names did not match the names in the filed PPP loans, and the salaries that he paid were much lower than what he originally filed for.
According to Fox Business, due to the discrepancies, Kindambu has been accused of spending the loaned money intended for coronavirus aid on luxurious items, including a Lexas automobile and a Cessna plane. Authorities have already seized the plane on Tuesday at Leesburg airport.
Meanwhile, an attorney for Kindambu, Kevin Carroll, said in an interview that his client was a good member of the community and a respected businessman. However, he also added that he had not had a chance to speak to Kindambu privately due to the pandemic.
The lawyer also stated that the prosecutors have not yet provided him with the charging documents. He also noted that he is eager to hear his client's side, aside from the alleged set of facts by the government, The Washington Examiner reported.
Following the alleged fraudulent activity, Kindambu is now facing one count of bank fraud and did not make a plea on Tuesday.
If convicted, the businessman may face up to 30 years in prison and pay a $1 million fine.
The Coronavirus Aid, Relief, and Economic Security Act was an economic stimulus package worth $2.2 trillion that was agreed on by President Donald Trump and the US Congress. Its main goal is to aid business and jump-start the economy crippled after the pandemic invaded the US.
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