Phoenix Man Sentenced to Prison for PPP Loan Scam

A Phoenix man who admitted to submitting false applications for Paycheck Protection Program loans has been sentenced to prison. Jamar Johnson, 54, pleaded guilty to wire fraud and will spend 15 months behind bars, followed by three years of probation.

The Small Business Administration (SBA) awarded Johnson's company two loans totaling $1,007,650. However, the company had zero employees and no payroll expenses, according to prosecutors. Instead, Johnson used the funds to buy cryptocurrency, a car, and cosmetic dentistry.

PPP loans were intended to provide emergency financial aid to small businesses during the COVID-19 pandemic. As part of his sentence, Johnson must repay over $1 million to the SBA.