SALT LAKE CITY (ABC4) – Timothy Gibson, a Utah resident and dual operator of Creative Investment Group LLC and Polaris Investment Group LLC is facing three charges after allegedly lying on PPP loans and advising his clients to do so as well.
At this time, Gibson is facing one count of bank fraud and two counts of making false statements to a bank.
For those who don’t know, the SBA Paycheck Protection Program (PPP) was established after the CARES Act was signed into law in March of 2020, which passed several temporary programs and supported the expansion of other programs to address the COVID-19 outbreak. In short, the PPP is a loan opportunity to aid small businesses in keeping their workers on the payroll.
Gibson’s crimes date back to May of 2020 when he hatched a scheme to defraud Mountain America Credit Union (MACU) through the PPP loan program. Additionally, Gibson allegedly advised 25 of his clients that they could apply for and obtain PPP loans using false information in order to “grow their business,” when growing a business was not an authorized use of PPP loan funds.
On May 11 of 2020, Gibson allegedly requested a PPP loan from MACU for $166,600, falsely advising the organization that Creative Investment Group LLC had eight employees when it only had one, and that the business had an average monthly payroll of $66,666.67 when there was no monthly payroll expenses in actuality.
On the same day, Gibson applied for another PPP loan of $208,300 after advising MACU that Polaris Development Group LLC had 10 employees when it only had 1, and that the administration had average monthly payroll expenses of $83,333.33 when, again, the organization had no monthly payroll expenses.
Days later on May 18 of 2020 Gibson submitted a PPP loan through MACU on behalf of J.W. and his company 17 Paths LLC, though the request was not funded.
As a result of his crimes, Gibson has been ordered to give up any belongings obtained by the proceeds he gained through false PPP loan statements.
At this time, a money judgment equal to the value of any property unable to be revoked is being worked out.