Robert Baines, 44, has been sentenced to 15 months in prison for fraudulently obtaining $41,484 in Paycheck Protection Program (PPP) loans. U.S. District Judge John A. Ross also ordered Baines to repay the loan amount along with an additional $4,815 to a property management company where he previously worked.
Baines pleaded guilty in August to two felony counts of wire fraud. Following his plea, allegations surfaced that he had directed tenants to pay rent directly to him. According to the U.S. Attorney’s Office for the Eastern District of Missouri, Baines moved two tenants into vacant apartments without leases, instructed them to pay him in cash, and pocketed a total of $7,315.
In his guilty plea, Baines admitted to obtaining the loans in 2021 by falsely claiming to be self-employed and lying about his business income. He submitted forged IRS forms to support his claims. For the second-draw loan, Baines falsely reported a 25% reduction in gross income between 2019 and 2020, despite being neither self-employed nor earning the reported income.
The U.S. Attorney’s Office emphasized that PPP loans were meant to help small businesses during the COVID-19 pandemic for critical expenses such as payroll and rent. Instead, Baines used the funds for personal expenditures, including restaurants, travel, clothing, and retail purchases.
This case highlights the misuse of federal funds intended for pandemic relief, and Baines now faces significant penalties, including the requirement to repay the full loan amount.