Cortney Merritts, a man from St. Louis, Missouri, has been charged with fraud after allegedly submitting fake applications to get government relief funds meant to help struggling businesses during the COVID-19 pandemic. The U.S. Attorney’s Office announced that Merritts is facing two counts of wire fraud for his attempts to obtain money through the Small Business Administration (SBA). Investigators say he falsely claimed to have multiple businesses with employees and high earnings in order to receive financial assistance he was not entitled to.
Federal prosecutors say Merritts received more than $20,000 in government aid by lying on his applications. The investigation is being handled by the Small Business Administration Office of the Inspector General and the FBI’s Washington Field Office. If convicted, he could face serious legal consequences.
Fake Businesses and False Applications
According to the indictment, Merritts submitted fraudulent applications for two different loan programs designed to help small businesses during the pandemic. The first case happened in July 2020, when he applied for an Economic Injury Disaster Loan (EIDL) for a moving business called “Vetted Couriers.” In his application, he claimed the business had six employees and had earned $32,000 in revenue in the previous year. As a result, he received an $8,500 loan from the SBA.
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The next day, Merritts tried to apply for another EIDL loan under his own name, pretending to have a separate business that had ten employees and had made $53,000 in revenue. He even requested an extra $10,000 advance. However, the SBA noticed that his two applications looked very similar and rejected his second request for funds.
A year later, in April 2021, Merritts applied for a Paycheck Protection Program (PPP) loan under his own name. This time, he falsely claimed to have a business that had earned $128,000 in 2020. Based on this claim, he was given a $20,832 loan. Instead of using the money to support a real business, he allegedly spent it for personal use. In July 2022, he submitted a loan forgiveness request, falsely stating that he had ten employees and had used all the funds for payroll expenses. Because of this false claim, the SBA forgave his loan, including interest.
Federal Investigation and Legal Action
Federal authorities take fraud cases like this very seriously. The Small Business Administration Office of the Inspector General and the FBI’s Washington Field Office conducted a thorough investigation into Merritts’ financial activities. They found multiple inconsistencies in his loan applications, which led to his indictment.
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U.S. Attorney Edward Martin Jr. announced the charges, emphasizing the government’s commitment to holding fraudsters accountable. The investigation was led by Special Agent in Charge Amaleka McCall Brathwaite of the SBA Office of the Inspector General and FBI Special Agent in Charge Sean Ryan of the Washington Field Office Criminal and Cyber Division. The case is being prosecuted by Assistant U.S. Attorney Joshua Rothstein and Special Assistant U.S. Attorney Rami Sibay.
The U.S. Attorney’s Office has stated that an indictment is only an allegation and that all defendants are considered innocent until proven guilty in court. However, if convicted, Merritts could face significant penalties, including jail time and repayment of the fraudulent funds.
This case highlights the government’s continued effort to investigate and prosecute individuals who took advantage of emergency relief programs during the COVID-19 pandemic. Authorities have been cracking down on fraud cases to ensure that relief funds go to those who truly need them.
