Three Indicted in $1.4 Million PPP Loan Fraud Scheme
EAST ST. LOUIS – Three men from the Metro East area have been indicted by a federal grand jury for their alleged involvement in a scheme to defraud the Paycheck Protection Program (PPP) during the COVID-19 Pandemic. Dana C. Howard, 52, of O’Fallon, Richard Scott Myers, 63, of Edwardsville, and Glenn Sunnquist, 53, of Swansea, face multiple charges, including conspiracy to commit wire fraud and wire fraud.
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The indictment, which was returned recently, accuses Howard and Myers of misusing a PPP loan of $1,426,500 obtained in April 2020. The loan was purportedly intended to support their construction company, Zoie, LLC, and freight company, Zade Trucking, both based in East St. Louis. Instead, it is alleged that the funds were diverted for personal use and for the benefit of another business they owned.
U.S. Attorney Rachelle Aud Crowe stated, “In one of the most prevalent and widespread fraud crimes in American history, any greedy individuals who sought to steal from the federal government under false pretenses and enrich themselves with PPP funds will be held accountable under the law.”
The PPP was established by the U.S. Small Business Administration to provide relief to businesses struggling due to the pandemic, allowing them to apply for forgivable loans to cover operational costs. According to court documents, Howard and Myers claimed that over $1.3 million of the loan would be used to maintain operations and pay employees.
FBI Springfield Special Agent in Charge Christopher Johnson emphasized the scale of COVID-related fraud, noting, “COVID fraud was massive in scale and ultimately the cost will be paid by American taxpayers for generations to come.” The FBI has initiated thousands of investigations across the country to combat such fraud.
The indictment further alleges that both Howard and Myers filed for bankruptcy in 2020, falsely stating they had little to no funds remaining from the PPP loan, while in reality, they possessed $450,000 in cashier’s checks. Additionally, they are accused of applying for a second PPP loan exceeding $1.4 million in January 2021, misleadingly asserting that they were not involved in bankruptcy proceedings.
Sunnquist, who served as a bookkeeper for both companies, is accused of falsifying expense records and manipulating invoices to support the loan forgiveness application. The Small Business Administration denied the forgiveness of the loan in September 2022.
Bill Steenson, Special Agent in Charge of the St. Louis Field Office of IRS Criminal Investigation, remarked, “The nation as a whole may have moved on from COVID, but IRS Criminal Investigation continues to track down fraudsters who stole money from pandemic relief programs to enrich themselves.”
The indictment serves as a formal charge, and under the law, all defendants are presumed innocent until proven guilty beyond a reasonable doubt. The investigation is being conducted by the FBI Springfield Field Office and IRS Criminal Investigation, with Assistant U.S. Attorney Kevin Burke prosecuting the case.
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