Gambling debt-driven
US District Judge Charlene Edwards Honeywell has sentenced a Tampa, Florida man to 33 months in prison for falsely using a pandemic and economic crisis loan to repay his gambling debt.
wire fraud and money laundering
According to a LinkedIn news release from the IRS Criminal Investigation (IRS-CI) Tampa Field Office, Judge Honeywell charged Barrett Purvis, 54, with wire fraud and money laundering on Wednesday.
The conviction includes state supervision for three years after his release from federal prison and an order to pay $499,900 in restitution. Purvis was previously found guilty after a trial on May 1, 2024.
Taking advantage
Court documents and testimonies from the trial reveal that Purvis hatched a scheme to defraud the Small Business Administration (SBA).
The Tampa native owned and ran his own business, so when COVID-19 struck, Purvis registered for and received a $500,000 Economic Injury Disaster Loan from the SBA in May 2021. According to the IRS-CI Tampa Field Office news release, Purvis “never intended to use any of the loan proceeds on working capital as required by the terms of the loan agreement.”
Instead, Purvis took advantage of the loan to split the proceeds to pay off his gambling and personal debts. Of the 50% he spent on his personal debt, Purvis also repaid money owed on his girlfriend’s three credit cards.
The IRS on Wednesday reported that, within a fortnight of pocketing the SBA loan, Purvis had blown almost all the proceeds on personal expenses bearing no relation to legitimate business. Special Agent in Charge Ron Loecker stated that “COVID-19 relief programs were meant to serve as a lifeline to those struggling during uncertain times.”
an obvious and despicable abuse”
“Using these funds to instead pay for a gambling habit is an obvious and despicable abuse of a well-intentioned program.”
Beware the IRS
Loecker went on to warn other SBA loan abusers “who exploited these programs for personal gain.” The special agent provided a reminder of the IRS’ long memory, adding it was “a safe bet that we will be holding you accountable.”
Thirty-three months in federal prison is no short stretch, making Purvis’ sentence a success for the prosecutor, Assistant United States Attorney Candace Garcia Rich.
Ironically, in the same month Purvis applied for his falsely intended loan, the US Attorney General created a COVID-19 task force from DOJ and federal resources to combat and prevent pandemic-related fraud.