Christopher Hooper of Cape Elizabeth has agreed to pay $1,240,500 in a civil settlement following allegations that he and his company, Hooper Consulting, LLC, misused funds obtained through the COVID-19 Economic Injury and Disaster Loan (EIDL) program.
The EIDL program was created to provide low-interest loans to businesses affected by the COVID-19 pandemic. These loans were intended to help with operating expenses such as payroll, rent or mortgage payments, utilities, and other ordinary business costs. Borrowers were required to use the loan proceeds only for working capital needs related to economic injury caused by the pandemic.
According to government allegations, Hooper used some of the relief funds for personal investments and stock trades. He also transferred large sums into his personal checking and savings accounts. The government further stated that after receiving the funds, Hooper submitted a hardship application seeking lower monthly repayments. It is alleged that he comingled EIDL money with other business funds before making substantial expenditures including payments of tens of thousands of dollars to an interior designer, over $10,000 at a Land Rover dealership, and additional spending on home improvements. The settlement resolves these allegations without any determination of liability.
The U.S. Attorney’s Office continues its efforts to identify cases involving fraudulent or improper use of pandemic relief funding. Federal law was recently amended to extend the statute of limitations for civil and criminal fraud enforcement actions related to PPP and EIDL loans from six years to ten years.
