A Springfield business owner faces serious charges related to COVID relief fund fraud and money laundering. Jason Hemingway, 47, has been indicted for allegedly misusing over $300,000 in pandemic-related funds.
Charges Against Jason Hemingway
The grand jury indicted Hemingway on multiple counts. He faces:
- Two counts of bank fraud.
- One count of making a false statement on a loan application.
- Three counts of money laundering.
Details of the Fraud
The charges stem from Hemingway’s application for a Paycheck Protection Program (PPP) loan. He submitted the application for his business, Principal Transfer Group, LLC, in February 2021. Prosecutors allege he provided false information in this application.
- Claimed another individual owned Principal Transfer Group.
- Stated the business had an average payroll exceeding $63,000.
- Indicated the company employed 25 individuals.
Hemingway reportedly received around $158,000 from the PPP loan. This program was designed to aid small businesses during the pandemic by offering forgivable loans for operational expenses, including salary support.
In April 2021, he applied for a second PPP loan for the same business and again received an additional $158,000. Allegedly, both applications contained misleading statements.
Misuse of Funds
According to the indictment, Hemingway misappropriated the funds for personal use. This included:
- Transferring $11,000 to the account of another business he owned, 417 Print Shop LLC.
- Moving $11,000 to his personal bank account.
- Investing over $13,000 in a stock trading account.
The allegations against Hemingway are serious. However, they are accusations at this stage, and guilt must be established in a federal trial.
Investigation and Prosecution
This case is being prosecuted by Assistant U.S. Attorney Casey Clark. The investigation was conducted by the IRS-Criminal Investigation unit and the Federal Bureau of Investigation.
As of December 17, the phone number for 417 Print Shop has been disconnected, indicating potential complications for the business.
