A St. Louis attorney, John J. Diehl Jr., 60, has pleaded guilty in U.S. District Court to one count of wire fraud involving nearly $380,000 in federal loan funds intended for small businesses during the COVID-19 pandemic.
As per the U.S. Attorney's Office, Diehl applied for an Economic Injury Disaster Loan (EIDL) on March 30, 2020, for his law firm, the Diehl Law Group. He used the funds for personal expenses instead of business needs. Spending included country club dues, mortgage payments, college tuition for a family member, maintenance of luxury vehicles, and cash withdrawals.
In March 2022, Diehl obtained an additional $285,000 loan modification, again affirming the funds would be used for business purposes. He transferred $150,000 of these proceeds into his personal retirement plan.
In total, Diehl received $379,900, which he later repaid to the U.S. Treasury. He faces up to 20 years in prison and a $250,000 fine at sentencing, scheduled for December 19. The FBI investigated the case, and Assistant U.S. Attorney Hal Goldsmith is prosecuting.
