(The Center Square) – A North Carolina business owner faces decades in prison and significant fines after a federal grand jury this week returned an indictment on charges of stealing $1.2 million from taxpayers through a COVID-19 relief scam.
Glynn Paul Hubbard Jr., 45, of Charlotte was indicted on wire fraud and money laundering charges by a federal grand jury in Charlotte on Wednesday. Prosecutors say he stole for himself and customers through the Paycheck Protection Program and the Economic Injury Relief Disaster Loan Program for himself.
For the wire fraud charge, Hubbard faces a maximum prison sentence of 20 years and a $250,000 fine, while the money laundering charge carries a potential 10 years in prison and $250,000 fine.
The indictment says Hubbard submitted fraudulent applications in both programs to the U.S. Small Business Administration and approved lenders for relief funds for his businesses, Borrow My Ride, Balanced Society Corporation, The Regins Corporation, and GGGAB, Inc., according to prosecutors.
Prosecutors say Hubbard reaped more than $570,000 through the scheme, which involved falsifying loan and financial information, employment data, and tax returns for the businesses. In addition, Hubbard bilked $660,000 in relief funds from the same federal programs for his customers, netting himself loan preparation fees totaling more than $150,000, according to the indictment.
Hubbard is accused of promoting the scam through personal referrals and social media posts advertising himself as a loan consultant, and required customers to pay the preparation fees in cash, or through cashier’s checks or wire transfers to avoid detection.
“Safeguarding taxpayer dollars and protecting disaster relief programs from fraud is a priority for my office,” said Dena King, U.S. attorney for the Western District of North Carolina. “Federal prosecutors are working side-by-side with investigators dedicated to identifying pandemic-related schemes and holding accountable individuals who sought to exploit COVID-19 economic relief programs put in place to help small businesses in a time of grave need.”
