An Iredell County dentist has been indicted on charges related to an alleged $3 million fraudulent loan scheme.
The federal grand jury’s indictment of 58-year-old Matthew Johnson of Troutman was unsealed Friday. The indictment alleges Johnson defrauded the Small Business Administration of more than $3 million and committed tax evasion, according to a release from the U.S. Attorney’s Office.
Johnson was a dentist and oral surgeon that owned Johnson Oral Surgery in Mooresville, and also owned Mount Mourne Springs, a real estate development company. The indictment alleges that from August 2018 to November 2021, Johnson submitted a false and fraudulent loan application in the name of his dental practice and the real estate development business.
The application was for a loan backed by the Small Business Administration, and allegedly contained fraudulent information, including false information regarding the status of Johnson’s personal and business taxes and outstanding tax debts.
For example, the indictment alleges that one of the fraudulent documents Johnson allegedly submitted in support of the loan application was a fabricated letter purporting to be from the Internal Revenue Service, falsely representing that Johnson was on a payment plan with the IRS.
As a result of the fraudulent loan application, Johnson received more than $3 million in an SBA-backed loan.
Contrary to claims Johnson made on the application about the purpose of the loan, Johnson allegedly used the loan funds to pay for personal expenses including travel, cash withdrawals, and to pay for farm equipment and home improvement projects.
In addition to the loan scheme, the indictment alleges that, from October 2015 to November 2021, Johnson committed tax evasion, and failed to pay more than $615,000 in taxes he owed to the IRS for tax years 2013, 2014, 2015, and 2016.
Johnson has been released on bond. He is charged with wire fraud, which carries a maximum penalty of 20 years in prison, and tax evasion, which has a maximum statutory penalty of up to five years in prison. Both charges also carry a fine of up to $250,000 for each offense.
Johnson did not return a phone call message left at his office.