Man Charged for Using Random Name Generator to Apply for $5 Million in PPP Loans

Alfredo Cuadros

TEXARKANA, TEXAS 

A Texas man is facing possible federal charges after an alleged attempt to cash in over 5 million dollars in Coronavirus relief funds for a seemingly fictitious business.

32-year-old Samuel Yates of Maud, Texas is being charged in connection to a series of fraudulent bank loan applications. Court filings allege that Yates asked for multiple business loans eligible through the Coronavirus Relief Economic Security Act (CARES Act) passed in March of 2020.

The man is said to have applied for bank loans claiming to have 412 employees and requested funds to keep his business running during the ongoing pandemic. 

The problem, says an indictment, is that the workers may not exist. Investigating Authorities believe Yates created proof of his employees using a random name generator website that is publicly available.

Yates could face up to 20 years of imprisonment and a fine of up to 250 thousand dollars, if convicted. 

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