U. S. Attorney Sayler A. Fleming | U.S. Department of Justice
U.S. District Judge John A. Ross sentenced Robert Baines, a St. Louis resident, to 15 months in prison for fraudulently obtaining loans intended for pandemic relief. Baines was ordered to repay $41,484, the amount he secured through fraudulent means, as well as an additional $4,815 to his former employer.
Baines pleaded guilty in August to two felony counts of wire fraud. Allegations arose that he instructed tenants to pay rent directly to him and moved two tenants into vacant apartments without leases, collecting a total of $7,315 in cash payments. He has since repaid $2,500 of this amount.
In his guilty plea, Baines admitted to acquiring Paycheck Protection Program (PPP) loans under false pretenses in 2021. He applied for the first loan on March 31 and a second on April 9 of that year by falsely claiming self-employment status and fabricating business income using a forged IRS form. In his second loan application, he inaccurately stated a reduction in gross income between 2019 and 2020.
The PPP loans were meant to support small businesses during the COVID-19 pandemic for expenses like payroll and utilities. However, Baines used the funds for personal expenditures such as dining out, travel, clothing, and retail purchases.
The U.S. Secret Service conducted the investigation into Baines' activities while Assistant U.S. Attorney Justin Ladendorf prosecuted the case.
