A Springfield business owner has been indicted by a federal grand jury for allegedly obtaining more than $316,000 in Paycheck Protection Program (PPP) loans through fraudulent means and laundering over $35,000 of those funds.
Jason L. Hemingway, 47, faces two counts each of bank fraud and making false statements on loan applications, as well as three counts of money laundering. The indictment states that Hemingway applied for a PPP loan for his company, Principal Transfer Group, LLC, on February 9, 2021. He is accused of falsely claiming another individual was the owner of the business and misrepresenting payroll and employment figures. According to the indictment, Hemingway stated the business had an average monthly payroll of $63,212 and employed 25 people—claims that were not true. He signed the application using the name of the person he claimed was president and owner and received $158,031 in PPP funds.
On April 8, 2021, Hemingway allegedly submitted a second PPP loan application with similar false information under another individual’s name. On this application he again certified prior receipt of a PPP loan and asserted it had been used entirely for eligible expenses—a statement described as false in the indictment. This second application resulted in another $158,031 disbursement.
The indictment further alleges that Hemingway used some of these funds for non-approved purposes including personal benefit. Specifically cited are transfers totaling $11,000 into an account belonging to another business he owned (417 Print Shop, LLC), $11,000 into his personal bank account, and $13,851.16 to his Robinhood investment account.
The government seeks forfeiture from Hemingway equivalent to any property derived from these alleged offenses: at least $316,062 related to fraud charges and an additional $35,851.16 connected to money laundering allegations.
“The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury whose duty is to determine guilt or innocence,” according to authorities.
Assistant U.S. Attorney Casey Clark is prosecuting the case following investigations by IRS-Criminal Investigation and the Federal Bureau of Investigation.
