GRAND RAPIDS, Mich. (WOOD) — A man was charged with wire fraud and money laundering for faking applications to receive federal COVID-19 loans in 2020, according to court documents.
In April 2020, Ralston Lewis of Kent County submitted two applications for Paycheck Protection Program loans from the federal government, court documents say. This money was dispersed under the Coronavirus Aid, Relief, and Economic Security Act, which was meant to help Americans and their businesses get through economic struggles during the pandemic.
In one of Lewis’ applications, he falsely reported that a company he represented, Blue Nyle Direct LLC, employed 12 people, whom it paid around $98,000. The application asked for around $245,000 in PPP loan funds. He submitted fake IRS forms from 2019 that showed Blue Nyle Direct LLC had more employees and payroll than it really did, court documents say. In May of 2020, the $245,000 loan was granted and dropped into the business’ bank account.
Lewis also submitted another application for a company called Toworda, asking for $195,000 in PPP loans. He falsely claimed the company had 11 employees and paid them an average monthly payroll of $78,000, court documents said. Toworda was granted a loan of $99,100 in May 2020.
From May through October of 2020, Lewis transferred money between the businesses and to his own various personal accounts, court documents show. He then used the money from granted loans for his “own personal benefit,” according to the documents.
Lewis was charged with wire fraud and money laundering, which each carry up to 20 years in prison and/or hundreds of thousands of dollars in fines. According to a court document, he has to pay back $344,100 or any property bought with the loans.
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