GRAND RAPIDS, Mich. (WOOD) — A man has been sentenced for defrauding the COVID-19 relief Paycheck Protection Program.
On Monday, Kurtin James VanderMolen of Kentwood was sentenced to 2 1/2 years in prison and $170,000 in restitution after pleading guilty to bank fraud and money laundering.
According to court documents, after filing nine bankruptcies in numerous states, VanderMolen submitted for a PPP loan on behalf of a fake company called Breakout Strategies on July 23, 2020. He falsified bank statements to make it appear like the company was in business as of Feb. 15, 2020, however, he didn’t organize it until Aug. 24, 2020.
He was approved for a $100,641 loan. Court documents show he withdrew $18,752 to pay for a 2010 BMW convertible. He also purchased two guns. All of the money from the first loan was spent by Feb. 3, 2021.
Court documents show that a week later, he applied for a second loan and was approved for a loan of $69,361. He used that money to pay for other personal expenses and luxury items like a May 2021 wedding on a boat in Florida.