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James Frank Austin allegedly purchased a Bentley after receiving nearly $2 million in funds.
Former Georgia State House candidate James Frank Austin Jr. was indicted by a federal grand jury for filing a false COVID PPP loan application.
According to the indictment, Austin received over $2 million in Paycheck Protection Program (PPP) assistance. A second defendant, Rosalend Way, was also named in the indictment, WMAZ News, Macon reported.
The indictment accused James Frank Austin Jr. of bank fraud, money laundering, and conspiring to commit wire fraud. Way was charged with two counts of conspiring to commit wire fraud and money laundering.
The Paycheck Protection Program was designed to help offset payroll expenses for businesses affected by the COVID-19 pandemic.
Austin filed a PPP loan request where he claimed that his business, Austin Smith Center for Community Development, had 15 employees with a monthly payroll of approximately $650,000. He received a loan for $654,315.
Austin and Way also filed a loan application for another organization, the Propel Opportunity Fund (POF).
The pair claimed they had 18 employees with an average monthly payroll of $420,558, according to the indictment obtained by The Macon Times. They provided documentation that showed they had paid more than $4.9 million in wages in 2019. They received over $1 million in loans for this application.
They submitted another application on behalf of the POF and received $372,500.
According to prosecutors, the information and the supporting documents, which included IRS forms, were falsified. The company had no employees and, therefore, no payroll expenses.
After receiving $2 million in COVID assistance, Austin and Way allegedly used the funds for personal use. Way is accused of using $30,000 to pay off a loan with Mercedes-Benz Financial. Austin purchased a Bentley for $119,840, prosecutors alleged.
Way was arrested on Tuesday and released on $20,000 bond. Austin was arrested on Sept.18 and made his first appearance in Federal Court on Sept. 19.
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