Fraudulent Business Owner Sentenced for Bankruptcy and Financial Crimes in Connection with PPP Loans

Business Owner Sentenced to Three Years in Prison for PPP and Mortgage Fraud Connected to Credit Union

A man named Jason Lee Rannfeldt, who owns five different businesses, was sentenced to three years in federal prison for bank fraud and other financial crimes. He used Paycheck Protection Program (PPP) loans from a credit union and a bank to pay off a $600,000 mortgage with another credit union before falsely declaring bankruptcy.

Rannfeldt pleaded guilty to multiple felony charges including bank fraud, false statements to a financial institution, money laundering, and false bankruptcy declaration. He submitted false and misleading information about his businesses’ income and payroll information on 11 loan applications to obtain or attempted to obtain approximately $1.5 million in PPP loan funds from a credit union and four banks.

In 2021, Vibrant Credit Union approved four PPP loans for Rannfeldt’s businesses, resulting in a loss of around $262,000 according to court documents. He also used some of these funds for a down payment on a mortgage loan from GreenState Credit Union for his home purchase. In addition, Rannfeldt applied for PPP loans from multiple banks, with only one loan being approved.

Following his bankruptcy declaration in December 2022, Rannfeldt made false statements and omissions according to court documents. After serving his three-year prison term, he will also be required to complete five years of supervised release.

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