The owner of a trucking company allegedly misused Payroll Protection Program (PPP) loans. He wasn’t supposed to get the loans at all since he allegedly obtained them by making false statements on his applications as well as hiding a previous felony charge and an ongoing federal indictment against him.
Hubert Ugarte owns Frisbu Trucking Inc. out of Salt Lake City. Both he and the controller of the company were arrested on June 25th and charged with conspiracy, removal of property to prevent seizure, loan application fraud, wire fraud, and money laundering.
According to the Justice Department, a maximum sentence on all counts could see them both facing up to 65 years in prison. The controller of the company, Lisa Rowberry, is already out of bail.
Frisbu Trucking received a $210,000 loan through the PPP. Under the terms of the loan, at least 75% was supposed to be used to pay employees. Instead, Ugarte used more than half to make payments on leased trucks and truck parts.
All of this occurred while Ugarte was under indictment for a totally separate case where he allegedly bribed FedEx employees as part of a “pay-to-play” scheme worth $280 million.