O’Fallon, Ill., plumber gets probation for lying on nearly $500K coronavirus relief loan | Law and order

O’FALLON, ILL. – An O’Fallon, Illinois plumber was sentenced Wednesday to three years’ probation for a federal crime related to a nearly $500,000 loan for coronavirus relief and ordered to repay $310,000.

Jason E. Spengler, 45, applied for a loan for the Paycheck Protection Program in 2020. In April, he got a loan of $487,095. The PPP was part of the Coronavirus Aid, Aid and Economic Security Act, or the CARES Act.

Spengler did not disclose in his filing that his company was bankrupt. Spengler Plumbing Co. was ineligible for the loan due to bankruptcy. Spengler also didn’t get permission from the bankruptcy judge to take on new unsecured debt, they said.

A representative of the trustee asked Spengler’s lawyer about the loan in June 2020. Nine days later, he paid back $176,751 but had already spent $310,343.

Spengler’s attorney was allowed to refund the refund in full before he was convicted; it was not clear on Wednesday whether he had done so.

Spengler pleaded guilty to one felony in U.S. district court in April for making a false statement about a federal loan application.

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