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Justice News

Department of Justice
U.S. Attorney’s Office
Eastern District of Missouri

FOR IMMEDIATE RELEASE
Wednesday, August 17, 2022

St. Charles County man admits pandemic loan fraud

ST. LOUIS – A man from O’Fallon, Missouri on Wednesday admitted fraudulently obtaining a $54,900 loan meant to aid businesses affected by the coronavirus pandemic.

David Smiley, 39, pleaded guilty in front of U.S. District Judge Ronnie L. White to a wire fraud charge. Smiley admitted that on July 8, 2020, he fraudulently sought and later obtained a $54,900 Economic Injury Disaster Loan through the federal Small Business Administration.

Smiley lied about the existence of a company, falsified that company’s gross revenue and falsely claimed that 13 employees worked there, his plea agreement says. He also listed his personal checking account as the business bank account.

Smiley admitted using the money for car payments, private school payments, to repair a Cadillac Escalade SUV and for cryptocurrency.

FBI investigators obtained and executed a seizure warrant on July 6, 2021, recovering $25,000 from Smiley’s checking account. He was indicted a month later.

The wire fraud charge carries a penalty of up to 20 years in prison, a $250,000 fine, or both. Smiley is scheduled to be sentenced Nov. 16.

The FBI investigated the case. Assistant U.S. Attorney Derek Wiseman is prosecuting the case.

Topic(s): 
Financial Fraud
Updated August 17, 2022