In his loan applications, Ruth falsely claimed the businesses were operational and had numerous employees, prosecutors said. Prosecutors said Ruth applied online in May and June 2020 for Paycheck Protection Program loans, which were available through the Coronavirus Aid, Relief and Economic Security Act. He received loans worth nearly $523,000 for three businesses: $69,165 for Ruth Properties MGM LLC, $336,600 for Ruth Properties MGM, and $117,000 for Ruth Trucking LLC. Court documents show that the three businesses claimed addresses in Jasper and Henry counties.
Ruth did not use the money for the businesses, instead wiring it in June and July 2020 into bank accounts with Lamar Bank and Trust and JP Morgan Chase Bank. He then used the money to buy a 2016 Cadillac and a 2020 Dodge Charger, both of which he later traded to buy a 2017 Dodge Challenger from a Joplin car dealership, court records say. He also used the loan funds to pay for gambling expenses at various casinos, charging documents show.
The case was investigated by the IRS. A sentencing hearing will be scheduled after the completion of a pre-sentence investigation by the U.S. Probation Office. Ruth faces up to 40 years in prison without parole.
News Highlights Business
- Missouri Man Pleads Guilty to Pandemic Business Loan Fraud | Coronavirus updates
- Check all news and articles from the Business news updates.