A Missouri business owner has been sentenced to 108 months in prison for multiple offenses, including bank fraud, Clean Air Act violations, and witness tampering. U.S. District Judge Sarah E. Pitlyk handed down the sentence to Christopher Lee Carroll, 55, from Farmington, Missouri. Carroll was also ordered to pay $3 million in restitution.
Carroll's conviction came after a jury found him guilty of three counts of bank fraud, three counts of making false statements to a financial institution, one count of conspiracy to violate the Clean Air Act, 13 violations of the Clean Air Act, and two counts of threatening a witness.
Evidence presented during the trial revealed that Carroll and his business partner George Reed owned Square One Group LLC, a timeshare exit company. In April 2020, they submitted a fraudulent application for a $1.2 million Paycheck Protection Program (PPP) loan by falsely stating that their spouses owned the company. This was done to hide Carroll’s status as a paroled felon which would have disqualified them from receiving PPP funds.
Instead of using the PPP loan for its intended purpose—supporting employees—Carroll diverted funds to start Whiskey Dix Big Truck Repair LLC. The pair then sought loan forgiveness under false pretenses and applied for an additional loan exceeding $1.6 million.
The Clean Air Act violations were related to removing emissions control equipment from Whiskey Dix’s diesel trucks fleet. Additionally, evidence showed Carroll attempted to influence witnesses by asking one employee to take responsibility for his crimes and threatening another with withdrawal of legal support if they cooperated with federal agents.
U.S. Attorney Sayler A. Fleming emphasized the importance of prosecuting pandemic fraudsters like Carroll: “People like Christopher Carroll took advantage of a once-in-a-generation crisis.” FBI St. Louis Special Agent in Charge Ashley Johnson described Carroll as "a career criminal" who defrauded taxpayers and abandoned customers while having a violent criminal history.
Whiskey Dix was also convicted on 16 Clean Air Act violations and received three years probation as part of its sentencing.
George Reed pleaded guilty in September 2022 to bank fraud charges related to fraudulent PPP loans applications and misuse of funds meant for employee wages and benefits. He was sentenced last month with time served along with an order for $3 million restitution payment.
The case was investigated by both the FBI and U.S Environmental Protection Agency Criminal Investigation Division; Assistant U.S Attorneys Gwendolyn Carroll & Kyle Bateman led prosecution efforts against those involved in this complex scheme.
