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Charlotte pastor falsely obtained PPP loans

Charlotte pastor falsely obtained PPP loans
Written by Publishing Team

Officials said Frank Jacobs, Sr. used false information when he applied for a PPP loan and said his Charlotte church paid employee payroll tax.

CHARLOTTE, NC – A Charlotte priest has pleaded guilty to obtaining a COVID-19 Paycheck Protection Program (PPP) loan for his church using fraudulent information, the US Department of Justice announced Wednesday.

Frank Jacobs, the 51-year-old father, who formerly lived in Charlotte and now resides in Concord, used “false and inaccurate” information when he applied for federal pandemic relief funds in April of 2020, according to the Justice Department. On Wednesday describing the acknowledgment documents. Jacobs alleged that Quest Church, a church in Charlotte whose pastor was, paid wages totaling more than $135,000 to five employees for whom federal income taxes were withheld, officials said. Investigators found that Quest Church never reported payments of any wages to the IRS for the corresponding calendar year and did not pay any withholding taxes on that income.

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The Department of Justice said Jacobs was a patron of Quest Church from 2019 to at least 2021. Officials said he was previously pastor of the Rocky Worship Center Church in Charlotte from at least 2009 to 2018.

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The same investigation reviewed documents showing Jacobs’ failure to file a timely U.S. individual income tax return (Form 1040) between 2009 and 2013, and again from 2015 through 2017, the Justice Department said. Officials said Jacobs filed taxes in 2014 but admitted in court on Wednesday that he underreported his income on those returns and failed to make any payments to the IRS for any tax obligations.

Jacobs has pleaded guilty to tax fraud and telegraph fraud, to filing a false tax return, and to using fraudulent information to obtain a COVID-19 relief loan.

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The charge of filing a false tax return carries a maximum legal penalty of three years in prison and a $250.00 fine. Electronic fraud carries a maximum penalty of 20 years in prison and a $250,000 fine.

If you believe you have been a victim of coronavirus relief fraud or have information regarding fraud related to COVID-19 relief funds, you may call the National Disaster Fraud Center hotline at 866-720-5721.

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