A Charlotte business owner pleaded guilty in federal court to charges related to a scheme that allowed him to bilk the government out of more than $1.2 million in COVID-19 relief funds for himself and customers, according to the U.S. Attorney’s Office.
Glynn Paul Hubbard Jr., 46, of Charlotte, pleaded guilty Monday to wire fraud and money laundering charges. He could face a maximum prison sentence of up to 30 years in prison.
According to filed plea documents, from March 31, 2020, to Aug. 1, 2020, Hubbard submitted fraudulent Paycheck Protection Program and Economic Injury Relief Disaster Loan Program loan applications to the U.S. Small Business Administration and SBA-approved lenders, seeking to obtain relief funds for himself and for other businesses. Hubbard referred to the others as his “customers.”
To obtain the relief funds for himself and his customers, Hubbard falsified the loan applications and supporting documentation by including false financial information, fake employment data and fraudulent tax returns.
Of the $1.2 million in relief funds disbursed as a result of the scheme, Hubbard received more than $570,000 for himself, and more than $660,000 was disbursed to his customers.
According to court records, Hubbard promoted the fraudulent scheme through personal referrals and in social media posts where he advertised that he was a PPP loan/EIDL consultant. Hubbard received improper loan preparer fees for his consulting services totaling more than $150,000. To avoid detection, Hubbard required customers to pay his fees in cash, via cashier’s checks, or wire transfers.
Following the plea hearing, Hubbard was released on bond. The wire fraud charge carries a maximum prison sentence of 20 years. The maximum statutory penalty for the money laundering offense is 10 years in prison. A sentencing date has not been set.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with U.S. Attorneys’ Offices and agencies across government to enhance efforts to combat and prevent pandemic- related fraud.
Hubbard could not be reached for comment.