Arkansas woman indicted after securing $ 2 million in P3 loans
Little Rock woman faces fraud charges after she Lied about a Paycheck Protection Program (P3) application to get nearly $ 2 million in loans, including thousands in personal expenses, Arkansas officials said.
Ganell Tubbs, 41, was arrested this week for fraud by the U.S. Attorney’s Office in the Eastern District of Arkansas, according to a press release from the agency. She reportedly submitted a PPP application for two companies: The Little Piglet Soap Company, LLC and Suga Girl Customs, LLC, the statement said.
The Arkansas secretary of state said neither business was in good standing and both listed Tubbs’ home address and personal phone number as business contact information, the statement said. A company is considered good reputation in Arkansas if it meets “all requirements regulated by the Secretary of State for Arkansas,” says the Secretary of State’s “Doing Business in Arkansas” guide.
Tubbs claimed to have paid more than $ 1.3 million in salaries and allowances to Suga Girl Customs during the first quarter of 2020 on a claim submitted in late April, the statement said. Her application was approved and she received more than $ 1.5 million in loans at the start of May, the statement said.
Two days after getting the loan, she spent $ 8,000 on her student loans, the statement said. The following week, she spent around $ 6,000 on online purchases at Apple, Michael Kors, Sephora, The North Face, Nike and other retailers, the statement said.
On the same day she received the funds, she applied for a loan for The Little Piglet Soap Company, the statement said. That request was also approved and Tubbs received $ 414,375 in loans, the statement said.
The indictment charged Tubbs with two counts of bank fraud, two counts of misrepresenting a loan application and one count of money transaction with illegal activity process, the statement said.
“Many businesses across Arkansas are struggling to stay open during this COVID-19 pandemic, so our office has zero tolerance for anyone who fraudulently abuses federal funds meant to help businesses get through this difficult time,” he said. said Diane Upchurch, special agent in charge of the FBI. “Along with our federal and state partners, we will remain vigilant against fraudsters and ensure that P3 funds are used as intended.”