A Springfield business owner has been indicted in federal court for allegedly obtaining more than $316,000 fraudulently through COVID-relief loans and laundering more than $35,000 in those loan funds.
Jason Hemingway, owner of Principal Transfer Group LLC, is facing three counts of money laundering, and two counts each of bank fraud and making a false statement on a loan application, according to a news release from the U.S. Attorney’s Office for the Western District of Missouri. He is accused of lying on applications to receive pandemic relief business loans through the Paycheck Protection Program (PPP) that was established under the Coronavirus Aid, Relief, and Economic Security, or CARES, Act to assist businesses during the pandemic.
According to the release, in early 2021, Hemingway allegedly applied for a PPP loan for his business claiming that another individual was the owner of the business and stating it had an average monthly payroll of more than $63,000 and employed 25 people, all of which were false. He signed the application in the name of the person he claimed was the president and owner of Principal Transfer Group and received roughly $158,000 in PPP proceeds. The loan program authorized forgivable loans to small businesses to retain workers, maintain payroll, and make mortgage interest, utility and lease payments.
Later in the same year, Hemingway applied for another PPP loan claiming he had used the full amount of the previous loan on eligible expenses only, which according to the news release was a false statement. On this second application, he again allegedly claimed another person was the owner, that the business’s monthly payroll exceeded $63,000 and it employed eight people, all of which were false. He received another $158,000 in PPP loans.
The indictment also alleges that Hemingway used the loan funds for non-approved purposes, including his personal benefit. According to the news release, he transferred $11,000 into the bank account of another business he owned, 417 Print Shop LLC and another $11,000 into his personal bank account. Nearly $14,000 of the PPP funds were allegedly transferred into Hemingway’s Robinhood account, which is a financial services company that allows users to invest and trade in stocks and cryptocurrencies.
The indictment also contains a forfeiture allegation which would require Hemingway forfeit at least $316,000 and the additional nearly $36,000 back to the government as proceeds derived from the scheme.
According to the Missouri Secretary of State business database, the Principal Transfer Group LLC was dissolved in late 2021 after a new registered agent was not appointed. The 417 Print Shop LLC is still listed as active though the registered agent for this entity also resigned in 2021.
Marta Mieze covers local government at the News-Leader. Have feedback, tips or story ideas? Contact her at mmieze@news-leader.com.
