A California businessman has admitted to orchestrating a $14 million fraud scheme involving small business loans intended for Covid-19 relief. Darren Carlyle Sadler pleaded guilty in federal court to charges of wire fraud related to the Paycheck Protection Program (PPP), which was part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Sadler’s fraudulent activities involved submitting at least 63 PPP loan applications in 2020 for himself and his clients. These applications contained false information about employee numbers and payroll figures, leading to the disbursement of over $14 million in funds. Additionally, Sadler received more than $1.9 million in fees from clients for securing these fraudulent loans.
The proceeds from this scheme were used by Sadler to fund a lavish lifestyle during the pandemic. He rented a villa, traveled on private jets, and purchased luxury vehicles such as a Rolls Royce and multiple Mercedes-Benzes. Other expenditures included designer clothing, a luxury watch, and dining at high-end restaurants.
Sadler, aged 38 and residing in Costa Mesa, California, faces up to 20 years in federal prison following his guilty plea on Monday. The sentencing date is yet to be determined by U.S. District Judge Thomas M. Durkin.
The announcement of Sadler’s guilty plea was made by Andrew S. Boutros, United States Attorney for the Northern District of Illinois, alongside Douglas S. DePodesta, Special Agent-in-Charge of the FBI’s Chicago Field Office. The investigation involved collaboration with the U.S. Small Business Administration Office of Inspector General and the U.S. Postal Inspection Service. Assistant U.S. Attorney Kartik K. Raman represents the government in this case.
