Chattanooga Preacher and Entrepreneur Sentenced for COVID Relief Fraud
Ricky Taylor submitted 8 fraudulent applications, received almost $1.8 million in loans
On Jan. 8 Ricky Lee Taylor, Jr., 36, was sentenced to 30 months in prison followed by three years of supervised release. Taylor, a preacher and entrepreneur in Chattanooga, Tennessee, was sentenced for tax fraud and for using fraudulent documents to apply for Paycheck Protection Program loans.
Ricky Taylor / Photo via social media @N64 Exposure Showcase
On top of the prison sentence, the judge also ordered Taylor to pay $2.5 million in restitution to the United States, plus a money judgment of $942,239.
Taylor submitted a letter to District Judge Travis McDonough Atchley ahead of sentencing. He wrote, “As you may know, I do not have any criminal history, and I am still stunned, shocked, and paralyzed that I’m in this situation so let me walk you through everything that was going through my mind.” Taylor went on to explain why he submitted fraudulent applications.
Taylor’s ventures include Potter’s Wheel Trucking, LLC; Ricky Taylor Basketball, LLC; Arena of Praise; Spirit Logistics, LLC; and Reap Real Estate and Property. According to the letter, Taylor made money as a full time entrepreneur while also doing ministry.
Taylor says he applied for the loans because he didn’t want his employees to get evicted or be unable to feed their children. He says the first round of funds ran out quickly from “keeping employees on payroll and paying for unexpected expenses with the trucks.”
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He said he made poor decisions in the second round of funding. Worried the pandemic was going to last a long time, he applied for more money than he was qualified to receive. Between eight fraudulent PPP applications, Taylor received approximately $1.8 million in relief funds. He was also convicted of tax fraud for not claiming the loan income on his tax returns, according to the Chattanooga Times Free Press.
“I was just trying to save my company and retain my employees just like every other small business owner affected by the pandemic,” Taylor said in the letter. “I have a heart for people, and I didn’t want to lose those relationships with my employees.”
During the pandemic there was a higher demand for trucks because of the increase in consumer goods, Taylor said. He used the funding to hire more people and expand from 5 trucks to 13 trucks.
“I wholeheartedly admit that I was wrong for requesting so much, and I take full responsibility for my actions and decisions,” he wrote. “As a faith community leader, I let the faith community down. As a basketball coach, I let my players, parents, and staff down. As a man of faith, I misrepresented God, my family, and my fiancé who I was supposed to marry last year.”
MinistryWatch has reported on pastors in Florida and Illinois who were also accused of COVID relief fraud.
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