This one caught my eye on the monthly OIG report from the SBA. This particular borrower did not make a full disclosure and is probably regretting that decision. It’s better to be upfront with an explanation rather than hide information that will inevitably come out.
Maine Business Owner Sentenced
On April 18, 2012, a Maine business owner was sentenced to 24 months incarceration, one year supervised release, and a $100 special assessment fee. The sentence is the result of a conviction on one count of false statements. When the subject applied for a $1.3 million SBA-guaranteed loan, he submitted an SBA Form 912, Personal History Form, indicating that he had no prior criminal convictions. In fact, he had been convicted of criminal violations on four previous occasions. This case was referred to the OIG by the U.S. Attorney’s Office, Portland, Maine, when, in the course of a health care fraud investigation, it was discovered that the subject had made false statements to the SBA. He was ordered to serve this sentence concurrently with the 30-month prison term resulting from his health care fraud conviction. The SBA loan was paid in full; therefore, no restitution was ordered. This is a joint investigation with the FBI.