SEATTLE — On Wednesday, May 29, a former Seattle man was sentenced to 42 months in prison for three counts of bank fraud in connection with the COVID-19 Pandemic Paycheck Protection Program (PPP), Tessa M. Gorman, U.S. Attorney said.
30-year-old Donte McClellon was a resident of Seattle at the time of the crime.
In May and June of 2020, McClellon falsified documents and received $500,948 that he used to spend on himself and investments.
“The negative effects of McClellon’s crime go beyond the financial loss. His fraudulent applications clogged an overtaxed application system and stole valuable resources from lending institutions working tirelessly to distribute money,” U.S. Attorney Gorman said. “McClellon even attempted to cut the line in front of actual small businesses. His fraud was not a one-time error in judgment, but rather a calculated attempt to take advantage of the relief systems set up for businesses struggling because of the COVID-19 pandemic.”
According to court documents, McClellon used three inactive Limited Liability Companies (LLCs) he previously registered in Washington State when he applied for the PPP loans.
When he received the money he spent it on rent payments for a Manhattan apartment, Uber rides, gym membership costs, and personal travel.
U.S. District Judge Lauren King noted that the societal costs of these crimes are serious, saying that the crimes affected taxpayers and diverted funds from struggling small businesses.
©2024 Cox Media Group
