Costa Mesa, CA – A local businessman pleaded guilty today to allegedly masterminding a $14 million Covid-relief fraud scheme involving federal small business loan programs, according to authorities.
According to the U.S. Attorney’s Office for the Northern District of Illinois, Darren Carlyle Sadler, 38, of Costa Mesa, allegedly submitted and caused the submission of at least 63 fraudulent Paycheck Protection Program (PPP) loan applications during 2020. Authorities stated the applications, which Sadler filed for himself and clients, allegedly misrepresented employee numbers and payroll amounts to qualify for forgivable federal loans.
Officials allege Sadler obtained more than $14 million in loans as a result of these filings and collected over $1.9 million in fees from clients for allegedly securing funds through fraudulent means. The U.S. Attorney’s Office reported that Sadler spent proceeds on luxury expenses, including renting a private jet, purchasing high-end vehicles like a Rolls Royce and multiple Mercedes-Benzes, acquiring designer clothing, and paying for upscale dining…