Illinois Business Owner Charged for $600K Tax Fraud and False Loan Applications
Owner of Illinois Business Indicted Over Tax Fraud and Other Offenses
In a recent development, an Illinois business owner has been indicted by a Chicago federal grand jury for allegedly evading employment taxes amounting to around $600,000, amongst other offenses.
Cordell, owner of the business, is also accused of wire fraud, not filing business tax returns, and providing falsified information on a loan application.
Details of the Indictment
Steven Cordell, who owns and operates Starfish Transportation Inc, is at the center of the indictment. As per the court report, Cordell is alleged to have withheld Medicare, Social Security, and income taxes from his employees’ wages, and failed to remit those funds to the IRS each quarter.
The IRS Criminal Investigations unit together with the Small Business Administration’s Office of Inspector General is currently investigating the case, which is being prosecuted by Regina Jeon and Thomas Flynn of the Tax Division.
Fraud Charges: Paycheck Protection Program (PPP) and the Coronavirus Economic Relief for Transportation Services (CERTS)
Reportedly, Cordell also engaged in fraudulent activities related to the Paycheck Protection Program (PPP) and the Coronavirus Economic Relief for Transportation Services (CERTS). These were programs aimed at supporting struggling businesses affected by the COVID-19 pandemic. Allegedly, Cordell submitted unfiled tax returns and provided false financial data in his applications to these programs.
Cordell did not disclose that he had already received a PPP loan when applying for the CERTS grant, a requirement in the application process. It is alleged that Cordell received $247,822.51 in fraudulent PPP loans and $598,574.21 in fraudulent CERTS grants.
Maximum Penalties for Charges
The charges against Cordell carry serious penalties. He could face up to 30 years for filing a false loan application, 20 years for wire fraud, five years for evasion of employment taxes, and one year for each charge related to the failure to file returns.
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