St. Louis, MO — Two residents of Missouri are in hot water after being accused of defrauding pandemic relief loan programs. Kahroun Armstrong, also known as Kahroun Leflore, and Dortatius L. Hill have been indicted on several charges, including bank and wire fraud, as well as making false statements.
The indictment comes after they allegedly misused funds from the Paycheck Protection Program (PPP), which was designed to help businesses stay afloat during the COVID-19 pandemic.
Who Are the Accused?
Kahroun Armstrong, 48, from Black Jack, Missouri, and Dortatius L. Hill, 41, from St. Louis, were both indicted on September 4. They appeared in U.S. District Court in St. Louis on Wednesday, where they pleaded not guilty.
Armstrong, who was a former employee of the Department of Veterans Affairs (VA), has since left his job at the VA. Hill was reportedly involved in applying for two PPP loans for his own company. His applications, dated April 2 and April 9, 2021, claimed he had a gross income of $120,000, which the U.S. Attorney’s Office claims was false.
What Happened?
The Paycheck Protection Program was launched to provide financial aid to businesses and help them keep their employees on payroll during the economic challenges brought on by the pandemic.
According to the indictment, Hill successfully obtained two PPP loans amounting to over $41,000. However, the applications reportedly contained incorrect information regarding his income.
Armstrong allegedly applied for PPP loans for two businesses he owned, Arm & Arm In Home Health Care Services LLC and Arm & Arm Motors LLC.
He reportedly claimed high gross incomes for both businesses and promised to use the loan funds for payroll and other business expenses. Armstrong received $20,832 for each business but later sought loan forgiveness despite claims that the money was improperly used.
Legal Consequences
Both Armstrong and Hill face serious charges. Bank fraud can lead to up to 30 years in prison, while wire fraud may result in up to 20 years of incarceration, along with significant fines. These charges represent only accusations at this stage, and both defendants maintain their innocence until proven guilty.
The investigation, led by the Department of Veterans Affairs Office of Inspector General, uncovered the alleged fraudulent activities. The cases are being prosecuted by Assistant U.S. Attorney Jennifer Roy, as reported by the U.S. Attorney’s Office.
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Next Steps
An arraignment for the new charges is scheduled to take place on October 16. As the legal process unfolds, both Armstrong and Hill will have the opportunity to contest the allegations against them.
The outcome of these cases will depend on the evidence presented in court and the defense provided by the accused.