Detroit Man Charged With Defrauding Program Intended to Help Businesses Struggling Because of COVID-19

He is accused of using the money to buy cars

WWJ News
June 03, 2020 - 4:15 pm

(WWJ) A Detroit man is facing federal charges for allegedly defrauding the Payroll Protection Program aimed at helping businesses during the pandemic.

Matthew Schneider, U.S. Attorney for Eastern District of Michigan, is charging Darrell Baker, 51, of knowingly submitting a fraudulent claim for support to a business he closed last year.

Investigators say records show Baker closed “Motorcity Solar Energy” in July of 2019. However, the records show he applied for the federal loan program claiming over $2.8 million in compensation for 68 employees.

The federal case alleges Baker used addresses of homes or vacant offices to obtain over $590,000. 

He is also accused of withdrawing some of the money to purchase four vehicles for himself and family members.

A hearing on the case is expected soon in Federal Court in Detroit.