BIRMINGHAM – A Madison County couple pleaded guilty to defrauding the Small Business Administration’s (SBA) Paycheck Protection Program (PPP) on Tuesday, Nov. 21.
The admission was announced by U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Carlton L. Peeples.
John D. Scoggins, 43, and Jennifer C. Scoggins, 37, husband and wife, both of Huntsville, pleaded guilty before United States District Court Judge Madeline H. Haikala to conspiracy to commit wire fraud.
According to the plea agreement, between February and June 2021, the Scogginses conspired to defraud the SBA and the United States Government by receiving nearly $1.2 million in fraudulent PPP loans on behalf of four purportedly operational businesses. The Scogginses submitted loan applications containing material misrepresentations and supported by falsified and fraudulent documentation. The Scogginses used the PPP loan funds for unauthorized purposes, including purchasing a home and taking a family vacation.
The maximum penalty for conspiracy to commit wire fraud is 20 years in prison.
FBI investigated the case. Assistant U.S. Attorney Jonathan “Jack” Harrington is prosecuting the case.
Anyone with information about allegations of attempted fraud involving COVID-19 relief funds can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.