An Arizona man has been sentenced to four years in prison for collecting fraudulent pandemic emergency loans.
James Theodore Polzin, 48, of Gilbert, was sentenced to 48 months in prison and will be required to pay more than $2.2 million in restitution for filing for millions in in fraudulent Paycheck Protection Program loans and Economic Injury Disaster Loans, according to an April 12 U.S. Customs and Immigration Enforcement's Homeland Security Investigations news release.
“This defendant defrauded a program intended to assist hardworking Americans who have been unfairly impacted as a result of this unprecedented and challenging health crisis,” said Scott Brown, special agent in charge for HSI Phoenix. “HSI remains committed to working with our law enforcement partners to bring every asset to bear against anyone who knowingly and willingly seeks to take advantage of the pandemic to deceive others for their own profit.”
The federal government passed the Coronavirus Aid, Relief and Economic Security Act to provide emergency relief funds to Americans economically impacted by the COVID-19 pandemic. The CARES act authorized PPP loans which were provided to business to help them retain employees and pay expenses during the pandemic, according to the release.
From April 2020 to August 2020, Polzin allegedly filed fraudulent PPP loans totaling more than $3.5 million while claiming non-existent employees, the release reported. Polzin then used much of the funds to enrich himself, such as buying a Porsche, a home and storing excess money offshore.
In April 2020, HSI launched Operation Stolen Promise to investigate the growing number of COVID-19-related fraud and criminal activity. The agency has recovered more than $49 million in illicit proceeds and made 281 arrests as of May 2021, according to the release.
