Ryan Turtle, a business owner from Memphis, Tennessee, has agreed to pay $1,731,200 to settle allegations of misappropriating COVID-19 Economic Injury Disaster Loan (EIDL) funds. These funds were obtained from the Small Business Administration (SBA) during the pandemic.
The settlement was announced by Michael A. Bennett, United States Attorney for the Western District of Kentucky. "COVID-19 EIDL funds were intended to help small business owners during difficult economic times and taking advantage of this program will not be tolerated," said U.S. Attorney Bennett. "Our office is committed to investigating and recovering taxpayer monies that have been diverted or misused."
The SBA provided EIDLs to small businesses for "working capital" during the pandemic. Turtle owned Turtle Company, a Kentucky corporation operating Little Caesars franchises in Western Kentucky. On October 27, 2021, he submitted an Amended Loan Authorization and Agreement with the SBA, certifying that he would use the loan proceeds as required.
However, it is alleged that instead of using the loan for its intended purpose, Turtle transferred the funds into various cryptocurrency accounts shortly after receiving them. The United States contends that this action led to unjust enrichment.
Assistant U.S. Attorney Matt Weyand handled this matter for the United States.