Fraud Friday – SBA COVID Relief Used to Buy Six Cars, a Yacht, Jewelry, and More

February 10, 2022

Delaney Sexton
Contributing Editor

Fraud Friday – SBA COVID Relief Used to Buy Six Cars, a Yacht, Jewelry, and More

A Missouri business owner, John Michael Felts, was sued by the federal government and is accused of using multiple companies to defraud the EIDL program and PPP. Additionally, he applied for loans using fake or synthesized names and companies, known as synthetic identity fraud. John obtained around $7.35 million in PPP loans, EIDLs, and EIDL grants based on the forfeiture.

According to IRS documents, most of the companies Felts used to apply for the 12 PPP loans did not have employees and were not in operation when he applied for the loans. Another 13 PPP applications were submitted using synthesized or fabricated identities and companies under his control.

Using part of the proceeds, it is alleged that Felts bought multiple pieces of land and used the same synthesized identity/companies to apply for loans to purchase the land. There were claims that the SBA loan proceeds were also used for home renovations. In September 2022, federal officials seized the following items:

• 2020 Lexus RX350 – seized from his mother-in-law
• 2020 Ford Transit Van
• 2020 Jeep Wrangler – gifted to a person
• 2018 Cadillac CT6 – seized from a family member
• 2021 Subaru Outback – seized from his brother
• 2020 Ford Transit Van
• 2021 Galeon 470SKY Yacht
• Jewelry – two-tone Rolex watch, two sterling silver bracelets, 18-karat yellow gold Rolex
• Multiple baseball cards, some of which were autographed, and other memorabilia

There are no criminal charges filed against Felts. He is scheduled to appear in court for the lots of land in January 2024.

Forfeiture Document
KY3 Article