Evergreen Reporter

U.S. Attorney Russ Ferguson has confirmed that Bobby Gerald Duncan and DE & E Foods, doing business as Hillbilly’s Barbeque and Steaks, have agreed to pay $1,530,682.26 in a settlement over allegations of pandemic relief fund misuse. The agreement addresses claims that Duncan misappropriated $762,903 intended for Hillbilly's BBQ by redirecting those funds for personal gain, violating the False Claims Act.

The U.S. civil complaint asserts that Duncan acquired the funds through an Economic Injury Disaster Loan and two Paycheck Protection Program loans. Allegedly, rather than directing the funds toward authorized expenses like payroll, Duncan used $100,000 to a personal account named “Vacation Account.” He subsequently attempted to inflate a friend's credit score for loan qualification but ended up purchasing a FedEx business for $750,000 from Hillbilly’s BBQ's account.

“Pandemic relief funds were meant to provide a financial lifeline to small businesses struggling to stay afloat during the unprecedented COVID crisis,” stated U.S. Attorney Ferguson. “Where those funds were misused, we will pursue their return as part of our ongoing effort to curb waste, fraud, and abuse of taxpayer money.”

Assistant U.S. Attorney Seth Johnson is overseeing the case. It is important to note that the settlement resolves allegations only, with no determination of liability.