SALT LAKE CITY (ABC4) – A Utah County man has been sentenced to prison for his connection to fraudulent representations he made to obtain a loan under the Paycheck Protection Program ( PPP).
Michael Leroi Douros, 66, of Lehi, was sentenced to 28 months in prison on January 12, officials said.
Court documents say Douros made false statements to two banks, totaling $437,891, to secure a PPP loan for his business, Epic Rentals UT LLC. Douros also made a paycheck for $20,000 from the company’s bank account.
The business was registered with the Utah Corporations Division with his son listed as a registered agent.
Douros originally submitted a loan request to Zions Bank for $198,000, which was later canceled by the bank after further inspection of the representations in the loan request.
Officials say Douros then submitted a second PPP loan application containing false claims through Cache Valley Bank, which was funded to the tune of $239,091.
Court records say Douros misrepresented information about Epic Rentals’ monthly payroll and the company’s employee count.
Douros claimed that his son owned 50% of the business when his son was actually just a straw owner (a person who owns a business or property in someone else’s name) and does not owned any part of the business. Douros also failed to disclose on the loan application that he had been convicted of a felony in Utah and had been on probation for five years.
PPP loan applications state that any business owned 20% or more by someone with such a criminal history is disqualified from receiving PPP loans. The Douros business was not eligible for funding.
Douros pleaded guilty to two counts of bank fraud, two counts of misrepresentation to a bank and money laundering.
Douros will have to serve three years of probation after serving his 28-month sentence.