Photo: Getty Images
A Michigan man has been sentenced to two years in federal prison for bank fraud and money laundering.
The U.S. Department of Justice announced that 56-year-old Darrell Baker of Detroit secured a $590,000 Paycheck Protection Program loan for a non-existent business and used the money to buy cars. The PPP loan was meant to help businesses keep their workforce employed during the COVID-19 pandemic.
Baker was able to withdraw more than $170,000 of the loan. With that money, he purchased two Cadillac Escalades, a Dodge Charger and a Hummer.
"By illegally taking money from the Paycheck Protection Program, Mr. Baker harmed the owners and employees of small businesses struggling through the pandemic," said Timothy Waters, Special Agent in Charge of the FBI in Detroit.
In Baker's plea agreement, the release states that he admitted to applying for and obtaining a $590,000 PPP loan for a business that he owns, called “Motorcity Solar Energy, Inc.” In the submitted application paperwork, Baker claimed that he had 68 employees and "paid wages, tips, and other compensation totaling $2.8 million" in 2019, but he had zero employees or payroll expenses and “Motorcity Solar Energy, Inc.” was not an operational business.
"Mr. Baker treated the PPP like his own personal bank account," Acting United States Attorney Saima Mohsin said.
In September of 2020, Baker pleaded guilty to one count of bank fraud and one count of money laundering.
Baker was sentenced to two years in federal prison and was ordered to forfeit his new vehicles. He also had to pay back $172,484.40 from the loan, as well as a restitution payment of $89,864.