In what stands out as a sobering reminder of the responsibilities tied to federal aid, Bobby Gerald Duncan and his company DE & E Foods, Inc., which operates under the name Hillbilly's Barbeque and Steaks, have been obliged to settle to the tune of $1.5 million over accusations of pandemic relief fund misuse. This settlement, as announced by U.S. Attorney Russ Ferguson, addresses claims that funds destined to support businesses during the global health crisis were instead diverted for personal profit.
Details from the U.S. Attorney’s Office reveal that Duncan managed to acquire $762,903 in federal relief via the Economic Injury Disaster Loan (EIDL) and two Paycheck Protection Program (PPP) loans. These funds, intended for payroll and other business purposes, were allegedly misused when Duncan transfered $100,000 to a personal "Vacation Account," and subsequently attempted to enhance a friend's credit score unlawfully for additional SBA loan qualifications. The misuse of funds continued, when that ploy did not bear fruit, Duncan outright purchased a FedEx business for $750,000 using capital from the barbecue joint.
U.S. Attorney Ferguson maintained that the pandemic relief programs were designed to serve as an economic safety net for small entities struggling during the pandemic. "Pandemic relief funds were meant to provide a financial lifeline to small businesses struggling to stay afloat during the unprecedented COVID crisis", he said. The misuse of such funds, he underscored, would be met with stringent legal actions aimed at recouping the misappropriated taxpayer dollars, according to the U.S. Attorney’s Office.
Assistant U.S. Attorney Seth Johnson, who led the case, backed up Ferguson's sentiment on the egregious nature of the allegations. This legal resolution, as he puts it, should serve as a deterrent for any similar attempts to defraud essential aid programs in the future.
