Uncle Sam doesn’t play around when it comes to Paycheck Protection Program (PPP) loans. It was put during quarantine last year to help small businesses stay afloat, but by the thousands, people are starting to take advantage of the government business loan. It has been previously reported that NFL players, singers and stars have faced serious prison sentences and fines for falsifying records or spending money on personal affairs. In Phoenix, a police officer was reported to have been charged with defrauding the system of more than $1 million.

according to Phoenix New Times, Officer Tony Richardson raised $1,276,500 in the forgivable loan for her nonprofit, The Lotto Club.

PPP loan scam
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However, she and her business partner are accused of using financial resources for personal gain. The Lotto Club is reportedly listed as a “social club” that operates as a charitable effort for veterans and upon requesting the loan, Richardson claimed it employed 85 people. However, prior to submitting the application, The Lotto Club did not list any employees at all, nor did it even have a payroll. The nonprofit’s bank account was at zero dollars.

Blue Mitchell, Richardson’s business partner, withdrew a $200,000 check in his name, plus a subsequent $25,000 transfer. Mitchell appears to run several nonprofits in the Phoenix area, including Sigma CUTS, which claims to do a variety of charities across the United States.

Reports indicate that Richardson has since resigned after accusations of bank fraud, conspiracy and money laundering. Because she resigned, her department stated that they do not plan to launch an internal investigation.

[via]