A Missouri business owner has been sentenced to 108 months in prison for bank fraud, Clean Air Act violations, and witness tampering. U.S. District Judge Sarah E. Pitlyk delivered the sentence to Christopher Lee Carroll, 55, from Farmington, Missouri. In addition to the prison term, Carroll was ordered to pay $3 million in restitution.
Carroll was found guilty by a jury in August on multiple charges including three counts of bank fraud and conspiracy to violate the Clean Air Act. His offenses also included threatening a witness and making false statements to a financial institution.
Evidence presented during the trial revealed that Carroll and his partner George Reed owned Square One Group LLC, a timeshare exit company. They submitted a fraudulent application for a $1.2 million Paycheck Protection Program (PPP) loan in April 2020, falsely claiming their spouses owned the company to hide Carroll's status as a paroled felon.
The PPP funds were intended for employee payrolls but were instead used by Carroll to start Whiskey Dix Big Truck Repair LLC. The duo later applied for loan forgiveness under false pretenses and sought an additional loan exceeding $1.6 million.
Carroll's Clean Air Act violations involved removing emissions control equipment from trucks at Whiskey Dix. He attempted to manipulate employees into taking responsibility for his actions and threatened them regarding legal representation if they cooperated with federal agents.
U.S. Attorney Sayler A. Fleming stated: “This prosecution reinforces our office’s priority of going after the worst pandemic fraudsters.” Special Agent Ashley Johnson of the FBI St. Louis remarked on Carroll's criminal history: “This latest conviction is the tip of the iceberg for this career criminal.”
Whiskey Dix was convicted of 16 Clean Air Act violations and received three years probation from Judge Pitlyk.
George Reed pleaded guilty in September 2022 to bank fraud related charges and admitted involvement in obtaining PPP loans fraudulently alongside failing employee payments despite receiving funds meant for that purpose.
The case was investigated by both the FBI and U.S Environmental Protection Agency Criminal Investigation Division with Assistant U.S Attorneys Gwendolyn Carroll and Kyle Bateman leading prosecution efforts.