Commerce Township man illegally obtained $500k in PPP loans, feds say

(FOX 2) - A Commerce Township man behind three different companies that fraudulently obtained small business loans from the federal government has settled with U.S. prosecutors. 

He's part of $1.9 million in settlements tied to allegations of unlawfully using the Paycheck Protection Program setup during the pandemic.

Big picture view:

The Department of Justice announced a settlement with four Michigan businesses over their illegal obtaining of small business loans through a pandemic-era program designed to help companies struggling during the era. 

One man identified as Firas Hajjar was behind three of the businesses that collectively applied for more than $500,000 in PPP loans from the U.S.

He reportedly owned Your Fantasy Warehouse, Inc., Ugly Christmas Sweater, Inc., and Costume Agent, Inc., but failed to disclose he had pleaded guilty to tax evasion when he applied for the loans. 

The other company that settled with the U.S. was Delta Staffing LLC, which was owned by Bradley McKouen.

McKouen also failed to disclose he had been convicted of felony tax evasion when applying for two PPP loans that totaled more than $462,000. 

Dig deeper:

According to a press release from the DOJ in 2019, Hajjar filed a false corporate return in 2012 after underreporting income from his company Your Fantasy Warehouse.

YFH is an internet retail business that sells pop culture-themed clothing.