A business owner from Springfield, Missouri, has pleaded guilty to fraud and money laundering related to the misuse of federal COVID-19 relief funds. Jason L. Hemingway, 47, admitted in court to obtaining $316,062 in Paycheck Protection Program (PPP) loans through false statements and using the funds for personal expenses.
According to court documents, Hemingway submitted two PPP loan applications for his company, Principal Transfer Group, LLC, in February and April 2021. On these applications he overstated the number of employees and claimed that the funds would be used for eligible business costs. Additionally, he used another individual’s name without their knowledge or permission because of his own poor credit history.
The loans were intended as emergency financial assistance under the Coronavirus Aid, Relief, and Economic Security (CARES) Act for businesses affected by the pandemic.
Hemingway pleaded guilty to one count of bank fraud and one count of money laundering. He agreed to pay restitution totaling $316,062 and will forfeit any property gained through his scheme.
A sentencing hearing will be set after a presentence investigation is completed by the United States Probation Office. The maximum sentence allowed by law is up to 30 years in prison for bank fraud and up to 10 years for money laundering. “The maximum statutory sentences are prescribed by Congress and are provided here for informational purposes,” according to information released by prosecutors.
Assistant U.S. Attorney Casey Clark is prosecuting the case following an investigation conducted by IRS-Criminal Investigation and the Federal Bureau of Investigation.
The United States Attorney’s Office for the Western District of Missouri manages prosecutions such as this one across 66 counties stretching from Iowa to Arkansas with offices in Kansas City, Jefferson City and Springfield (official website). The office works with various law enforcement partners on issues including violent crime, drug trafficking and financial fraud (official website). It operates within a jurisdiction affiliated with the U.S. Department of Justice (official website).
