Liberty County pair accused of heading on lush holiday vacation with fraudulent money from CARES Act scheme

A Liberty County pair faces federal prosecution in Texarkana for a COVID aid rip-off, allegedly filing hundreds of pretend mortgage applications for customers and pilfering $1.3 million from govt coffers.

Clifton Pape and Sally Jung, of My Buddy Financial loan, then went on a expending spree with their illegal earnings, including a go cart tour in Conroe and glitzy holiday at a San Antonio resort, in accordance to court docket paperwork submitted in the Eastern District of Texas.

Pape and Jung, whose company was registered to an address in Houston, are accused of charging applicants additional than $1,000 to fill out their paperwork for a $10,000 agricultural grant by way of the Tiny Business enterprise Administration’s CARES Act funding, aimed at firms harmed by the coronavirus epidemic. Rather, their mortgage organization developed cookie cutter programs for every single of the small business candidates that ended up fraudulent, officers claimed.

Investigators say the pair submitted 222 Financial Injury Disaster Financial loan apps in June and July for companies that all transpired to have precisely 10 employees — the amount essential to unlock the highest $10,000 through the application. The SBA granted $10,000 progress resources to 130 of those candidates for a full of $1.3 million.

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