Farmington, Missouri, has seen the resolution of a major fraud case as local business owner Christopher Lee Carroll, 55, was sentenced to 108 months in federal prison for his fraudulent activities during the pandemic. The sentence, handed down by U.S. District Judge Sarah E. Pitlyk, also includes a restitution payment of $3 million.
According to the U.S. Attorney's Office, the co-owner of Square One Group LLC didn't hesitate to fraudulently leverage a Paycheck Protection Program (PPP) loan meant to safeguard jobs. Carroll and his business partner, George Reed, falsely claimed that their wives owned the company to secure $1.2 million, which they then diverted to launch Whiskey Dix Big Truck Repair LLC. Their deception didn’t end there, as they obtained a second loan, with Carroll taking $660,000 in "owner draws" after receiving approval. The judge sentenced them to nearly a decade in federal prison for their actions.
Carroll's actions also involved environmental violations. He was found guilty of removing emission control equipment from his trucking company’s diesel fleet, in violation of the Clean Air Act, a federal law aimed at reducing air pollutants. In an effort to avoid further responsibility, he attempted to persuade employees to take the blame and withdrew legal support when ethical concerns emerged. As a result, his company, Whiskey Dix, was sentenced to three years of probation.
U.S. Attorney Sayler A. Fleming pulled no punches describing the gravity of Carroll's actions. "This prosecution reinforces our office’s priority of going after the worst pandemic fraudsters," Fleming affirmed. "People like Christopher Carroll took advantage of a once-in-a-generation crisis to enrich themselves at the expense of struggling Americans. This office will continue to make sure that defendants like Carroll are held accountable to the fullest extent of the law." In addition to the financial fraud, Carroll's previous convictions, including felonious restraint and forcible sodomy, highlight a history of criminal offenses.
Finally, the case of Carroll’s former associate, Reed, has been resolved. After pleading guilty to bank fraud last September, the 70-year-old was sentenced to time served and ordered to pay $3 million in restitution. With both men sentenced, the case highlights that fraud, especially during times of widespread crisis, leads to prison time and restitution. The FBI and the U.S. Environmental Protection Agency Criminal Investigation Division were involved in the investigation, with Assistant U.S. Attorneys Gwendolyn Carroll and Kyle Bateman handling the prosecution. The case addressed both financial fraud and environmental violations.
