Alabama couple took $1.7M in COVID relief funds to buy home, plastic surgery, prosecutors say
Federal prosecutors today indicted a Huntsville couple, accusing them of fraudulently taking $1.7 million in Paycheck Protection Program funds.
John D. Scroggins, 43, and Jennifer C. Scroggins, 37, face a five-count indictment on charges of conspiracy to commit wire fraud, according to an announcement from the U.S. Attorney’s Office for north Alabama.
Prosecutors say the couple used the money to buy a home, take a family vacation and receive plastic surgery.
According to the indictment, between February and June 2021, they submitted loan applications containing false information and supported by fake documents to the Small Business Administration.
The husband and wife received about $1.7 million in fraudulent PPP loans on behalf of four supposedly operational businesses, according to the announcement from U.S. Attorney Prim Escalona and FBI Special Agent-in-Charge Carlton Peeples.
The PPP program was developed in response to the COVID-19 pandemic to help businesses meet payroll without laying off employees. Last year, NBC reported as much as $80 billion — or about 10 percent — of the $800 billion handed out may have been stolen through fraud schemes.