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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowA former Indiana medical school student plans to plead guilty to two counts of wire fraud for a COVID-19 relief fraud scheme that netted more than $300,000, according to federal prosecutors.
Jonathan Andrew Jones, 31, of Lafayette is expected to be sentenced Nov. 19.
Jones submitted a total of 11 fraudulent Paycheck Protection Program and Economic Injury Disaster Loan applications between January 2021 and December 2022, obtaining more than $325,000 in COVID relief funds, according to a press release from the United States Justice Department.
An attorney listed in court documents as representing Jones did not immediately respond Friday to a request for comment from The Indiana Lawyer.
In one instance, Jones received $197,000 from the United States Small Business Administration’s economic injury loan program for his tutoring business. He claimed his business known as “Med School Side Hustle” generated thousands in revenue and had hefty overhead costs, according to the Department of Justice.
Prosecutors said in a statement Friday that the business actually had no customers, employees, revenue or expenses.
He also deceived federal officials by attaching fraudulent tutoring invoices as proof of his claims. Jones also applied for paycheck protection funds using his name in addition to five friends and family members, according to the justice department. He received$69,629 which was deposited in the accounts of the applicants. Jones later moved the money into his own account.
Prosecutors say Jones used the money for personal expenses that included gambling and purchasing cryptocurrency.
The justice department said the charges were brought as part of a Task Force to Eliminate Fraud.
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