SALT LAKE CITY ( ABC4 ) — Three Tooele residents accused of running a loan fraud ring are set to appear before a U.S. Magistrate Judge Thursday, following a federal indictment. The indictment, returned by a grand jury on Feb. 28, includes charges of wire fraud and aiding and abetting during the COVID-19 pandemic, the U.S. Department of Justice said. According to court documents, Halee Ann Mehlbauer, 38, Timothy George Lopez, 62, and Rick Bolton, 65, of Tooele, allegedly ran a Paycheck Protection Program loan fraud ring from July 2020 to January 2022. The DOJ said Mehlbauer, Lopez and Bolton applied for several PPP loan and loan forgiveness applications that attempted to defraud lenders and the Small Business Administration of more than $422,000. These were funds
Congress reportedly allocated to the SBA to provide low-interest loans to eligible small businesses experiencing financial disruption due to the pandemic. When applying for the loans, the DOJ said Mehlbauer, Lopez and Bolton used fictitious businesses that did not exist before the pandemic hit. Additionally, the three reportedly exaggerated and fabricated the number of employees, average monthly payroll and gross income of those fictitious businesses. Mehlbauer, Lopez and Bolton also allegedly submitted fake tax forms and payroll tax forms to support their fabricated payroll and gross income, but never filed the fake tax forms they submitted to their lenders with the IRS, the DOJ said. Mehlbauer also allegedly transferred at least $49,475.02 of PPP loan funds to herself in checks, the DOJ said, and Mehlbauer, Lopez and Bolton spent the rest on “unauthorized personal expenses, including debt payments, car expenses and gambling.” “By lying on the PPP loan applications, Mehlbauer, Lopez and Bolton fraudulently obtained at least approximately $195,930.50 in PPP loan funds and obtained forgiveness of at least approximately $155,477.50 of their approved PPP loans, that they were not eligible to receive,” the DOJ said. Mehlbauer, Lopez and Bolton are charged with seven counts of wire fraud and aiding and abetting. Additionally, Mehlbauer is charged with money laundering. Charges are allegations only. All arrested persons are presumed innocent unless and until proven guilty beyond a reasonable doubt.