Uncovering Financial Deception: Louisiana’s Pandemic Fund Scandal Explored

Uncovering Financial Deception: Louisiana's Pandemic Fund Scandal Explored

Louisiana businessman Brian T. Owen faces up to 10 years in prison for laundering $3.8 million in pandemic relief funds, using the money for personal expenses including gambling debts.

At a Glance

  • Brian T. Owen, 52, pleaded guilty to money laundering charges in Northwest Louisiana
  • Owen fraudulently obtained $3.8 million in Employee Retention Credits during the pandemic
  • He used the funds for personal expenses, including gambling debts, instead of business purposes
  • Owen defrauded a Distribution Trust of over $1.1 million by bypassing a bankruptcy agreement
  • He faces up to 10 years in prison, 3 years of supervised release, and a $250,000 fine

Pandemic Relief Funds Misused by Louisiana Businessman

Brian T. Owen, a 52-year-old businessman from Caddo Parish, Louisiana, has pleaded guilty to money laundering charges relating to COVID-era relief funds. Owen, who was the president of an oilfield consulting service business in Bossier City, devised a scheme to defraud both the government and his creditors by misusing pandemic relief funds intended to support struggling businesses.

The case, announced by United States Attorney Brandon B. Brown, reveals the extent of Owen’s fraudulent activities. On September 30, 2024, Owen was charged with one count of money laundering, to which he ultimately pleaded guilty. This plea comes after an extensive investigation conducted by the IRS Criminal Investigation, FBI, and Louisiana State Police.

Bankruptcy and Trust Evasion

The roots of Owen’s illegal activities can be traced back to June 22, 2020, when his company filed for Chapter 11 bankruptcy. As part of the company’s reorganization plan, a Distribution Trust was established in January 2021 to pay back creditors. Under this agreement, Owen was required to pay 30% of any additional compensation to the Distribution Trust.

However, Owen had other plans. He devised a scheme to intercept U.S. Department of Treasury checks meant for the company. In a brazen move, Owen opened a new bank account in the company’s name during bankruptcy proceedings. He then deposited $3.8 million in Employee Retention Credits (ERCs) into this account, effectively bypassing the Distribution Trust and using the funds for personal use.

Personal Gain at Creditors’ Expense

Instead of using the pandemic relief funds to support his business and employees as intended, Owen redirected the money to cover personal expenses, including significant gambling debts. This misuse of funds not only violated the terms of the pandemic relief program but also defrauded the Distribution Trust of $1,157,154.39 – the 30% that should have been paid according to the bankruptcy agreement.

Owen’s actions represent a clear case of exploiting a system designed to help businesses weather the economic challenges of the COVID-19 pandemic. By diverting these funds for personal use, he not only betrayed the trust of his creditors but also misused taxpayer money intended to preserve jobs and support legitimate business operations during a critical time.

Legal Consequences and Broader Implications

The severity of Owen’s actions is reflected in the potential consequences he now faces. According to the Department of Justice, Owen could be sentenced to up to 10 years in prison, followed by 3 years of supervised release. Additionally, he may be required to pay a fine of up to $250,000.

This case, presided over by United States District Judge S. Maurice Hicks, Jr. and prosecuted by Assistant United States Attorney Seth D. Reeg, serves as a stark reminder of the government’s commitment to holding individuals accountable for fraudulent activities, especially those involving pandemic relief funds.

The misuse of pandemic relief funds is not just a matter of financial fraud; it undermines the integrity of programs designed to support businesses and workers during unprecedented economic challenges. As taxpayers, we should be outraged by such blatant abuse of systems meant to help those in genuine need.

Though, we shouldn’t have locked down to begin with, should we?