Officials: 5 business owners charged in federal loan scheme


ATLANTA (AP) – Five small business owners have been accused of fraudulently obtaining about $4 million in federal funds and using them for personal expenses.

The U.S. Attorney’s Office says the alleged scheme began when four of the business owners took part in loan applications that sought nearly $800,000 for their businesses under the Paycheck Protection Program.

Authorities say the owners reported to having over five dozen employees but had not filed payroll tax forms last year or the first quarter of this year.

Officials say the owners transferred the funds to different accounts once they got the money.

Authorities say one business owner used the funds to buy two luxury cars.

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