Tennessee man pleads guilty to mortgage fraud, money laundering, COVID-19 relief fraud

A Franklin, Tenn., man pleaded guilty to fraud in connection with COVID-19 relief programs, mortgage fraud, and money laundering. John Paul Dillon pleaded guilty to one count of bank fraud stemming from a fraudulent loan application he submitted to finance a $470,000 mortgage. Among other things, Dillon submitted a falsified bank statement in support of this loan application. Additionally, Dillon pleaded guilty to one count of bank fraud, one count of wire fraud, and one count of money-laundering related to fraudulent loan applications submitted in connection with the Payroll Protection Program (“PPP”) and the Economic Injury Disaster Loan Program. In support of federal loan applications, Dillon falsely claimed he and others earned hundreds of thousands of dollars in income from a “ride-share business” and also falsely claimed Dillon operated a company which paid over $500,000 in wages to employees. Dillon obtained almost $1 million through his fraud. In addition to agreeing to the entry of money judgments against him, Dillon has agreed to forfeit his residence, two late-model automobiles, and a pontoon boat. This case was investigated by the Federal Deposit Insurance Corp., Office of Inspector General; the Federal Bureau of Investigation; the Small Business Administration, Office of Inspector General; and the U.S. Treasury Inspector General for Tax Administration. Assistant U.S. Attorney Taylor J. Phillips is prosecuting the case.