Show-Me State Times

A St. Louis man on Wednesday admitted to fraudulently obtaining $41,484 in loans intended to help struggling businesses during the pandemic.

Robert Baines, 44, pleaded guilty in U.S. District Court in St. Louis to two felony counts of wire fraud. He admitted to fraudulently obtaining Paycheck Protection Program (PPP) loans in 2021 and agreed to pay full restitution.

Baines applied for a first draw PPP loan on March 31, 2021, and a second draw PPP loan on April 9, 2021. In the loan applications, Baines falsely claimed that he was self-employed and had earned gross income of $99,563 in 2019. He submitted a forged IRS form with his applications to bolster his claims. Baines was not self-employed and did not earn any of the claimed self-employment income. In his application for the second-draw loan, Baines falsely claimed that he had suffered at least a 25% reduction in gross income between 2019 and 2020.

The PPP loans were designed to help small businesses during the COVID-19 pandemic and were intended for business-related purposes such as covering payroll, utilities, rent or mortgage payments. Instead, Baines used the money for restaurants, travel, clothing and other retail items.

Baines is scheduled to be sentenced on November 12. Wire fraud is punishable by up to 20 years in prison, a fine of up to $250,000 or both prison and a fine.

The U.S. Secret Service investigated the case. Assistant U.S. Attorney Justin Ladendorf is prosecuting the case.