BALTIMORE, MD – Joseph Gillespie, 34, was indicted by a federal grand jury for allegedly conspiring to commit wire fraud in the submission of false claims for Paycheck Protection Program (PPP) benefits.
The indictment follows an announcement by United States Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office.
In August 2019, Gillespie founded JAG Investments LLC with the declared purpose to “purchase properties and rehab in Baltimore.” Gillespie was the sole signatory on accounts for JAG Investments at Wells Fargo and First National Bank of Pennsylvania.
Gillespie and co-conspirators allegedly prepared false documents to support a PPP loan application, including an incorrect 2019 IRS Form 940 and a misleading February 2020 bank statement. The falsified documents showed higher wages and ending account balances than were accurate. Gillespie received $138,104 in PPP funds in March 2021, of which $38,000 was paid to a co-conspirator for their role in submitting the fraudulent application.
After obtaining the PPP funds, Gillespie engaged Heartland Payment Systems to process payroll for alleged employees of JAG Investments, who later returned portions of their payroll payments back to Gillespie.
If convicted, Gillespie could face up to 20 years in federal prison for wire fraud conspiracy and a mandatory two-year sentence for aggravated identity theft. Sentencing will ultimately be determined by a federal district court judge.