Ex-Alabama sheriff’s business partner gets federal prison for loan fraud
The business partner of a former Alabama sheriff was sentenced to six months in federal prison Friday for defrauding the Paycheck Protection Program.
Danny Lee Beard Jr., the business partner of former Clarke County Sheriff William “Ray” Norris, was also ordered by U.S. Chief District Court Judge Jeffrey Beaverstock to pay more than $154,000 in restitution, according to Fox 10.
Beard’s sentencing was not logged in court records as of early Friday evening.
Beard pleaded guilty to one count of wire fraud in September and admitted to defrauding the COVID-19 loan program.
Prosecutors alleged Beard lied on two PPP loan applications for $74,207 each by falsely stating he was paying payroll taxes for all his employees.
On the second loan, Beard allegedly used the funds “for personal expenses unrelated to payroll costs, rent/mortgage interest, utilities, and covered operational expenses.”
Beard also completed the application for forgiveness of the first PPP loan, which was “fraudulently obtained,” according to the indictment against him.
In 2011, Norris formed Haddco, LLC — a company that buys, sells, trades and services vehicles and equipment.
Norris pleaded guilty in September in Mobile federal court to one count of making a false statement to a federally insured institution.
Authorities said he applied for four loans at two Alabama banks worth more than $48,000 and maintained that he would use the funds for his office’s operating expenses and jail food.
Norris, authorities said, instead used the loan money from Town County National Bank in Camden and Sweet Water State Bank in Sweet Water “for overdrawn personal accounts, gambling expenses, and other personal expenses,” according to the indictment against him.
Last week, the former sheriff had ethics charges reinstated against him by the Alabama Court of Criminal Appeals.
The court ruled that a judge erred in dismissing the charges based on Norris’ understanding that a state official promised he would not be prosecuted if he resigned from office.