HUNT VALLEY, Md. (TNND) \u2014 A federal judge sentenced a Californian businessman to over a year in prison on Monday for using a pandemic loan program to defraud the government out of hundreds of thousands of dollars.<\/p>\n
District Judge Jennifer Thurston of California\u2019s eastern court ordered Gurjeet Bath, a Fresno trucking business owner, to serve 14 months for illegally obtaining more than $825,000 through the Paycheck Protection Program from 2020 to 2021. He pleaded guilty last year to abusing <\/a>the program<\/a>, which was intended to help companies pay their workers as COVID-19 rocked the economy.<\/p>\n \u201cDuring a time when legitimate businesses were struggling to survive, this defendant chose to exploit a program designed to keep workers employed,\u201d Eric Grant, the head federal prosecutor of California\u2019s eastern district, said in a statement. \u201cHe has since pleaded guilty and repaid the stolen funds, but that does not erase the harm caused.\u201d<\/p>\n Bath admitted to misrepresenting the number of employees in his two businesses, G.S. Bath and Complete Transportation Solutions, as well as the workers\u2019 wages, in applications for the loans. He received more than $840,000 in funds for G.S. Bath and nearly $200,000 for Complete Transportation Solutions, money the government said he used to purchase two properties.<\/p>\n \u201cMr. Gurjeet Bath fabricated employee records and inflated wages to steal more than $825,000 in federal funds meant to keep businesses afloat during a national crisis. Instead, he used that money to buy land in Fresno County,\u201d Sid Patel, the head of FBI\u2019s Sacramento office, said in a statement. \u201cThe FBI and our partners at the [Small Business Administration] Office of Inspector General will continue pursuing everyone who treated pandemic relief as a personal slush fund.\u201d<\/p>\n Thurston ordered Bath to also reimburse the SBA $848,000 and pay a $100,000 fine.<\/p>\n The Paycheck Protection Program began in April 2020, weeks after the pandemic took hold on the country. The SBA described the program at the time as a way to stabilize businesses as the economy struggled to adjust to COVID-19’s effects.<\/p>\n \u201cThese loans will bring immediate economic relief and eight weeks of financial certainty to millions of small businesses and their employees,\u201d then-Administrator Jovita Carranza said. \u201cWe urge every struggling small business to take advantage of this unprecedented federal resource \u2013 their viability is critically important to their employees, their community, and the country.\u201d<\/p>\n The program was established through the Coronavirus Aid, Relief, and Economic Security, or CARES, Act, which provided emergency assistance to Americans.<\/p>\n