A St. Louis County man on Friday admitted fraudulently applying for pandemic loans totaling more than $33,000.
Corvell Wraggs Jr., 34, of Norwood Court, Missouri, pleaded guilty in U.S. District Court in St. Louis to two counts of wire fraud. He admitted fraudulently applying for a Paycheck Protection Program loan on April 11, 2021, falsely claiming that he operated a sole proprietorship in 2020 that generated a gross income of $74,000. He claimed he would use the money for payroll to retain workers and other business expenses. He then applied for a second draw loan, claiming that his gross receipts had dropped more than 25 percent. In all, Wraggs fraudulently obtained $33,832.
Wraggs is scheduled to be sentenced on May 8. The wire fraud charges are each punishable by up to 20 years in prison, a fine of up to $250,000, or both prison and a fine.
The FBI investigated the case. Assistant U.S. Attorney Tracy Berry is prosecuting the case.
