- Report: #1534826
Complaint Review: Greg S. Cagle - Austin Texas
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Greg S. Cagle
4301 Westbank Drive, Suite A-150 Austin, 78746 Texas, United States
Phone:
737-261-0600
Web:
https://caglepugh.com/
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Greg S. Cagle Arrest, Austin Texas
A Texas man, Greg Cagle, has been fined $120,000 and sentenced to 120 hours of community service for misappropriating funds from Covid-19 relief programs to purchase luxury items, including cars and a watch, as well as to pay off a home loan. This announcement came from the Justice Department following Cagle's sentencing on Monday.
Cagle, 32, pleaded guilty in September to charges of wire fraud and money laundering. The charges stemmed from his submission of fake Paycheck Protection Program (PPP) loan applications to two lenders on behalf of three different businesses, according to the Department of Justice.
The PPP loans were established to provide financial assistance to small businesses and their employees during the Covid-19 pandemic. However, Cagle's actions represent a misuse of these funds, with investigations revealing over half a billion dollars in fraud related to Covid-19 relief programs.
Court documents indicate that Cagle attempted to secure over $2.6 million through fraudulent loan applications and successfully received more than $1.6 million in PPP loan funds. He applied for and received two PPP loans within a month, expending the funds shortly after receiving them.
Cagle's attorney acknowledged the severity of the sentence imposed by Judge Fitzgerald, attributing it to Cagle's fraudulent behavior and prior criminal history. Fitzgerald emphasized that Cagle accepted full responsibility for his actions by pleading guilty to the indictment.
In one instance, Cagle submitted a PPP loan application requesting over $250,000 for a construction company, falsely claiming the company employed 30 individuals with a substantial monthly payroll. However, investigations revealed that the company had no employees and no payroll.
The second loan application, submitted on behalf of another company, similarly misrepresented the number of employees and payroll expenses. Cagle also failed to disclose pending criminal charges when applying for this loan.
Following the approval of the loans, Cagle swiftly used the funds to purchase luxury items, including a Rolex watch and a Lamborghini Urus. Law enforcement authorities managed to seize over $200,000 of the fraudulently obtained funds, along with the luxury items purchased by Cagle.
In addition to his fine and community service sentence, Cagle is required to forfeit the seized assets, including the Lamborghini, the Rolex watch, and other items. Fitzgerald expressed hope that Cagle's case would serve as a cautionary tale, emphasizing that there are no shortcuts to financial gain.
Cagle has been in custody since his bond was revoked in August 2020 pending designation by the federal Bureau of Prisons. He filed a notice of appeal in the case on Monday.
