Two Missouri residents, one a current and one a former employee of the Department of Veterans Affairs, stand accused of committing fraud to obtain loans meant for pandemic relief. Kahroun Armstrong, also known as Kahroun Leflore, and Dortatius L. Hill faced indictments on counts of bank and wire fraud, as well as making false statements, after tapping into funds from the Paycheck Protection Program, as reported by the U.S. Attorney's Office.
Armstrong, 48, of Black Jack, Missouri, and Hill, 41, of St. Louis, were indicted on September 4. They proclaimed their innocence when arraigned in U.S. District Court in St. Louis on Wednesday. Armstrong has since ended his employment with the VA. Hill's indictment alleges that he applied for two Paycheck Protection Program loans for his own company under his name on April 2 and April 9, 2021. He was successful in obtaining two loans totaling over $41,000, later seeking forgiveness for them. His applications reportedly contained false assertions of a $120,000 gross income, according to the U.S. Attorney's Office.
The purpose of Paycheck Protection Program loans was to offer financial support to keep employees on the payroll during the economic downturn caused by the COVID-19 pandemic. In what appears to be a scheme to exploit this aid, Armstrong purportedly sought loans for two businesses - Arm & Arm In Home Health Care Services LLC and Arm & Arm Motors LLC, falsely claiming substantial gross incomes for each and promising to use the loans for payroll and other business-related expenses. He received $20,832 for each business and later sought forgiveness of the loans despite the funds' alleged improper usage.
While the charges in the indictment represent only accusations, and the defendants maintain their innocence until potentially proven otherwise, the consequences of bank and wire fraud charges hold severe ramifications. According to legal protocols, bank fraud may result in up to 30 years of incarceration and significant fines, while wire fraud can carry a maximum of 20 years in prison, with various fines applicable based on the offense's gravity. The investigation conducted by the Department of Veterans Affairs Office of Inspector General led to the charges being brought forward, with Assistant U.S. Attorney Jennifer Roy heading the prosecution of these cases, as mentioned by the U.S. Attorney's Office.
