GRAND RAPIDS, Mich. (WOOD) — A man was charged with bank fraud for lying about the size of his company to get more money from a pandemic funds program, court records show.
Erik Stephen Post was indicted on a federal count of bank fraud on Thursday after applying for a loan around April 9, 2020, according to court documents.
Post applied for the Paycheck Protection Program hosted by the federally insured City National Bank — a loaning program that was available to small business facing financial difficulties because of COVID-19. The program was based on a company’s average monthly payroll, so loan applications relied on accurate information from the companies.
In Post’s application for his business, Datamotion LLC, he intentionally lied about the number of people who worked there and how much the company paid its employees monthly. Because of this, Post was able to get a loan of over $312,000, court documents say.
He faces up to 30 years in prison and a $1,000,100 fine, according to court documents.