O’Fallon Man Pleads Guilty to P3 Loan Fraud | USAO-SDIL
O’Fallon, Illinois – Jason Spengler (45), of O’Fallon, Illinois, pleaded guilty today to one count of
make a false statement on a federal loan application. According to court documents, Spengler
committed the felony offense last year when he sought help from the paycheck
Protection Program (“PPP”) without revealing that his company, Spengler Plumbing Company, was in
The Coronavirus Aid, Relief and Economic Security Act (“CARES”) was enacted in March 2020 for
provide emergency financial assistance to Americans suffering the economic effects of
by the COVID-19 pandemic. The federal PPP loan is one of the sources of relief provided for by the CARES Act.
program. Administered by the Small Business Administration (SBA), the program provided
loans to help eligible businesses during the COVID-19 crisis.
Debtors in bankruptcy were not eligible for PPP loans. The first question about applying for a loan
asked: “The plaintiff … is he currently involved in bankruptcy?” Above that
question, the application explained that the loan would not be approved if the applicant answered
When Spengler applied for a PPP loan last year, Spengler Plumbing was in bankruptcy. But Spengler
checked “No” on the request, falsely certifying to the lender and the ASB that Spengler
The plumbing was not bankrupt. Due to this misrepresentation, Spengler Plumbing received a
PPP loan of $ 487,095 in April 2020.
As a bankrupt debtor, Spengler Plumbing was also required by law to obtain prior authorization.
bankruptcy court before incurring any new unsecured debt. But Spengler applied for the
government loan without notifying the bankruptcy judge, thus bypassing the guarantees put in place
by the SBA and the bankruptcy court.
“Together with US attorney Steve Weinhoeft and our law enforcement partners, we will continue to
prosecute fraud and abuse in bankruptcy cases, ”said Nancy J. Gargula, US Trustee for the region
10. The US Trustee Program is the part of the Department of Justice that protects the integrity
the bankruptcy system by overseeing the administration of files and complaining about bankruptcy enforcement
laws. Region 10 is headquartered in Indianapolis, with additional offices in South Bend, Indiana,
and Peoria, Illinois.
Sentencing is set for August 18, 2021 at the Eastern Federal Courthouse. Saint Louis. Load
a maximum sentence of five years in prison and a maximum fine of $ 250,000.
This case has been referred to the United States Attorney’s Office for prosecution by the United States Trustee for the region.
10, in conjunction with the Southern District of Illinois Bankruptcy Fraud Task Force.
The investigation was conducted by the Small Business Administration – Inspector’s Office
General. The case is being continued by Deputy United States Attorney Peter T. Reed.