A St. Louis man, Cortney Merritts, 46, was indicted on wire fraud charges after allegedly defrauding the federal government for more than $20,000. The indictment, as reported by the U.S. Department of Justice, claims Merritts filed fraudulent applications for the Small Business Administration's disaster loan and paycheck programs designed to assist businesses affected by the COVID-19 pandemic.
The applications, submitted in 2020 and 2021, falsely asserted that Merritts' moving business, "Vetted Couriers," and another sole proprietorship under his name were significantly larger and more profitable than they were in reality. The charges include his attempting to receive additional funds after the SBA rejected one of his applications for being too similar to an earlier one. Despite this setback, Merritts was able to secure funds fraudulently on other occasions.
Delving into the indictment's details, Merritts collected an $8,500 Economic Injury Disaster Loan (EIDL) in July 2020. He had certified that "Vetted Couriers" had six employees and earned $32,000 in gross revenue the prior year. The following day, Merritts submitted another EIDL loan application, claiming a business with ten employees and $53,000 in gross revenue. According to officials, the SBA identified inconsistencies and rejected the second application.
In 2021, Merritts somehow slipped through the cracks again, receiving a $20,832 Paycheck Protection Program (PPP) loan for a purported business he claimed was established in 2020, reporting a gross income of $128,000. Merritts siphoned these funds for his personal use, later filing a loan forgiveness application that falsely claimed the loan was expended on payroll for ten employees.
The case, which unfolded under the collaborative investigation of the Small Business Administration Office of Inspector General and the FBI Washington Field Office, is spearheaded by Assistant U.S. Attorney Joshua Rothstein and Special Assistant U.S. Attorney Rami Sibay. Merritts currently stands under the presumption of innocence until proven guilty. If convicted, the fraudulent actions detailed in the indictment reflect a brazen exploitation of critical aid programs meant to prop up struggling businesses during a global health crisis.
