A former FBI employee from Texas has been sentenced to three months of home confinement and five years of probation in a federal court in San Antonio. The employee was convicted of wire fraud for fraudulently using the Paycheck Protection Program (PPP).
The Investigation
Court documents reveal that Christopher James Phillips, a resident of Schertz, established Phillips Global Realty LLC on December 20, 2019. On May 29, 2020, he applied for a PPP loan and utilized his FBI-issued credentials to verify his identity.
Shertz, a city located northeast of San Antonio.
The backstory: According to his application, Phillips stated that he had two employees and a monthly payroll averaging $15,000. He also provided an IRS Form 941 for the fourth quarter of 2019, which showed a payroll of $50,000 for that three-month period.
According to IRS records, it has been found that Phillips did not file the required form between 2019 and 2022. This implies that the Form 941 he included in his PPP loan application was fraudulent, and the information provided was false.
Phillips ensured that the PPP funds would be used exclusively for approved expenses, such as payroll, utilities, rent, and mortgage interest.
Timeline: He received $37,500 in PPP funds on June 2, 2020.
On June 8, just six days later, Phillips transferred $25,000 to a personal trading account. Unfortunately, all of the funds were lost as a result of trading activities.
He paid $5,117 towards his personal auto loan on June 9, 2020.
On June 16, 2020, he made a payment of around $8,500 towards his home mortgage.
On January 3, 2024, Phillips faced indictment on charges of wire fraud and engaging in a monetary transaction over $10,000 using proceeds obtained through criminal means.
On January 5, 2024, he got arrested and was released on the same day after posting a $30,000 bond.
On September 18, 2024, Phillips admitted his guilt in the wire fraud charge. As part of his sentence, Phillips will serve home confinement and probation. Additionally, he has been required to pay $39,771 in restitution.
Here’s what people are saying: “The United States government will aggressively prosecute criminals, even if those individuals work within our own ranks,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “As a result of his actions, Phillips is now a convicted felon and will spend the next five years under the watchful eye of the United States Probation Department. This sentencing should send a message to all government personnel who would consider using their position for personal gain. This office will carry out its duty and seek to hold you accountable for betraying the invaluable trust of the American people.”
