BUFFALO, N.Y. (WIVB) -- A Lancaster man was sentenced for filing fraudulent loan applications for loans that helped businesses keep their workforces employed during the COVID-19 pandemic, the U.S. Attorney's Office announced Friday.
According to officials, 45-year-old Larry Jordan conspired with his brother Curtis Jordan to submit eight fraudulent Paycheck Protection Program loan applications between April and September 2020. One of which was submitted on behalf of their company 5 Stems Inc.
The application claimed that in 2019, 5 Stems Inc. paid $242,133.33 monthly to 194 employees. The bank approved the application and funded a $605,200 loan. In reality, 5 Stems Inc. only had nine employees in 2019 and paid them $57,380 for the year.
The brothers submitted IRS forms and fraudulent payroll registers to corroborate the applications.
Curtis allegedly used some of the 5 Stems Inc. money for his own investments as well as home improvements and personal expenses after it was put into his bank account. He is awaiting sentencing.
Jordan was sentenced to 18 months in prison after being convicted of conspiracy to commit bank fraud and wire fraud.
Kayleigh Hunter-Gasperini joined the News 4 team in 2024 as a Digital Video Producer. She is a graduate of Chatham University.
