Merrick B. Garland, Attorney General | https://www.justice.gov/
Merrick B. Garland, Attorney General | https://www.justice.gov/
A Kansas businessman, Scott W. Anderson, has been convicted by a federal jury for submitting false information to secure loans from the Small Business Administration (SBA). The SBA is a federal agency that supports entrepreneurs and small businesses.
Court documents and trial evidence revealed that Anderson, aged 53 from Lenexa, was found guilty of multiple charges including four counts of making false statements in loan applications, four counts of wire fraud, and six counts of aggravated identity theft.
Anderson co-owned Riley Drive, a company operating restaurants in Kansas and Iowa. In 2018 and 2019, he applied for separate SBA loans on behalf of Riley Drive. During these applications, Anderson denied any involvement in legal actions despite the company being embroiled in civil lawsuits at the time.
The SBA approved a $3.6 million loan to Riley Drive in March 2018. However, the company defaulted by June 2019, resulting in a loss of $2,173,766 to the SBA. Another loan approved in April 2019 for $700,000 also defaulted by June 2019 causing an additional loss of $658,141.
The investigation is being conducted by the Small Business Administration – Office of Inspector General (SBA-OIG) along with the Federal Deposit Insurance Corporation – Office of Inspector General (FDIC-OIG). Assistant U.S. Attorney Chris Oakley is leading the prosecution.
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