EAST ST. LOUIS, Ill. — A federal grand jury has indicted three Metro East men on 13 counts for their alleged roles in a Paycheck Protection Program (PPP) loan fraud scheme, the U.S. Attorney’s Office announced Friday.
Dana C. Howard, 52, of O’Fallon, Richard Scott Myers, 63, of Edwardsville, and Glenn Sunnquist, 53, of Swansea, are accused of misusing over $1.4 million in federal funds intended for pandemic relief. The charges include conspiracy to commit wire fraud and wire fraud, with additional charges against Howard and Myers for bankruptcy fraud and false statements.
Howard and Myers, co-owners of the East St. Louis-based businesses Zoie, LLC, and Zade Trucking, allegedly secured a $1,426,500 PPP loan in April 2020 under false pretenses, claiming the funds would be used for payroll and operating expenses. Prosecutors contend the money was diverted for personal use and to benefit another business they owned, in violation of the program’s guidelines.
Court documents allege that both Howard and Myers filed for bankruptcy later in 2020, concealing $450,000 in available funds. In January 2021, they applied for a second PPP loan worth over $1.4 million while falsely stating they were not involved in bankruptcy proceedings. Sunnquist, a bookkeeper for the businesses, is accused of falsifying expense records and fabricating invoices to support a loan forgiveness application, which was ultimately denied by the Small Business Administration (SBA) in September 2022.
“This scheme represents an egregious misuse of pandemic relief funds,” said FBI Springfield Special Agent in Charge Christopher Johnson, who noted that investigations into COVID-19 relief fraud remain a priority. The FBI and IRS Criminal Investigation are leading the investigation, with Assistant U.S. Attorney Kevin Burke prosecuting the case.