Cincinnati, Ohio – A Cincinnati man has been sentenced to 13 months in federal prison after pleading guilty to fraudulently obtaining a Paycheck Protection Program (PPP) loan during the COVID-19 pandemic.
Fraudulent Loan Application Leads to Federal Charges
Kipterrez James, 44, was sentenced in U.S. District Court after an investigation revealed that he falsely claimed to own a taxi and rideshare business to secure pandemic relief funds. In 2021, James submitted an application stating that his business, “Kip James,” had grossed approximately $99,000 in 2019. However, court documents show that James was incarcerated at the time and could not have operated any business.
James, who had just been released from serving a 92-month federal sentence for illegally possessing a firearm, used his halfway house address in Cincinnati as his business location. Along with his application, he submitted a forged bank statement to support his fraudulent claim.
Misuse of Pandemic Relief Funds
After receiving nearly $21,000 in relief funds, James did not use the money for business expenses. Instead, he spent the funds on shopping sprees at clothing and shoe stores, liquor stores, restaurants, and even took a trip to Las Vegas.
Following an investigation, James pleaded guilty in September 2024 to making false statements to the federal government. In addition to his prison sentence, he has been ordered to repay $20,725 in restitution.
