A Gilbert man, James Theodore Polzin, was sentenced last week to 48 months in prison after pleading guilty in October to fraudulently obtaining millions of dollars in Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans.
Polzin, age 48, was also ordered to pay over $2.2 million in restitution.
The Coronavirus Aid, Relief, and Economic Security Act (“CARES”) is a federal law designed to provide emergency financial assistance to the millions of Americans who are suffering financially due to the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of forgivable loans to small businesses for job retention and certain other expenses, including PPP loans.
According to the Department of Justice, Polzin submitted materially false loan applications that claimed non-existent employees and revenues for business entities he owned and operated. From April 2020 to August 2020, Polzin applied for loans totaling over $3.5 million. Polzin then used a portion of the proceeds for his own personal benefit, which included purchasing a Porsche, a home, and stashing money offshore.