A St. Louis man has been sentenced to 15 months in prison for fraudulently obtaining loans meant to assist businesses during the pandemic. U.S. District Judge John A. Ross handed down the sentence on Thursday, ordering Robert Baines, 44, to repay $41,484 in misappropriated loan funds and an additional $4,815 to his former employer.
Baines pleaded guilty in August to two felony counts of wire fraud. Allegations also surfaced that he instructed tenants to pay rent directly to him and moved tenants into vacant apartments without leases, collecting cash payments totaling $7,315. He later repaid $2,500 of this amount.
In his plea agreement, Baines admitted to securing Paycheck Protection Program (PPP) loans under false pretenses in 2021. He applied for a first draw PPP loan on March 31 and a second draw on April 9 of that year. His applications included false claims of self-employment and fabricated business income supported by a forged IRS form. Additionally, he falsely asserted a significant reduction in gross income between 2019 and 2020 when applying for the second loan.
The PPP loans were intended as financial support for small businesses affected by the COVID-19 pandemic, specifically for expenses like payroll and utilities. Instead of using the funds appropriately, Baines spent them on personal items such as dining out, travel, clothing, and other retail purchases.
The case was investigated by the U.S. Secret Service with Assistant U.S. Attorney Justin Ladendorf leading the prosecution.