PHOENIX (AZFamily) — A Phoenix man who admitted to submitting false applications to receive more than $1 million in federal Paycheck Protection Program loans has been sentenced to prison.
Jamar Johnson, 54, pleaded guilty to wire fraud and will spend 15 months behind bars, followed by three years of probation.
Johnson submitted applications stating that his company had 73 employees and more than $4.8 million in payroll expenses, even though the company had zero employees and zero payroll expenses.
Johnson received $1,007,650 through two loans and used the funds to buy cryptocurrency, a car, and cosmetic dentistry, prosecutors said. He must now repay more than $1 million to the Small Business Administration as part of his sentence.
PPP loans were meant to provide emergency financial aid to small businesses during the COVID-19 pandemic.
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