Idaho Springs man sentenced for COVID loan fraud
Edward Baker Harrington was sentenced to 51 months in federal prison Friday for submitting fraudulent applications for government funds intended for businesses struggling during the COVID pandemic.
Harrington received more than $1 million and, in addition to the prison term, was ordered to pay back all of it.
Harrington, 59, filled out forms for Paycheck Protection Program (PPP) loans that were authorized by the U.S. Small Business Administration (SBA) following Congress's passing of the Coronavirus Aid, Relief, and Economic Security (CARES) Act in March of 2020.
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According to case documents, Harrington filed several of those requests for federal assistance between April 2020 and September 2021. In total, he was sent $1,078,033.50.
Harrington's applications contained false information about his social security number, his ownership of other businesses, the average monthly payroll and number of employees in those businesses, and his criminal history, according to the details of the case.
He also lied about using the PPP funds in support of those businesses.
"In fact," the indictment filed last October states, "the proceeds were used for Harrington's personal benefit."
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"Harrington used the Paycheck Protection Program as his personal ATM," Andy Tsui, Special Agent in Charge, Internal Revenue Service Criminal Investigation Denver Field Office, stated after Harrington's sentencing. "He brazenly stole over one million dollars with no regard for the hard-working American business owners and families this program was intended to support. IRS-CI has investigated over 1,000 instances of COVID-19 relief fraud since the CARES Act was introduced, and this sentence should send a clear message that we will continue to hold those accountable who abused the system for their personal benefit."
Harrington was initially charged with 13 counts - eight for wire fraud and five for money laundering. He was scheduled to go to trial in January but reached a plea agreement in March. In that agreement, Harrington pleaded guilty to one count each. He faced up to 30 years in prison on those two counts. Federal prosecutors asked for a 57-month sentence, according to case documents.
Harrington began receiving PPP funds the month after he started asking for them, according to details in the plea agreement. He received a total of 10 payments in amounts between $20,832 and $149,200.
Harrington filed on behalf of six companies: Alpine Search Partners, Arapaho Consulting, Elk Ridge Consulting, and Summit Consulting Services, all based in Evergreen, and Spruce Lake Search and Spruce Lake Consulting, based in Minneapolis.
Five other PPP loan requests filed by Harrington were turned down, according to case documents.
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The SBA paid $40,674.23 in processing fees to third-party lenders for underwriting and servicing of Harrington's PPP loans. Harrington's attorneys successfully argued for that amount to not be included in the restitution order.
The judge also ordered Harrington to submit to three years of supervised probation upon his release from prison.
No details of Harrington's personal expenditures were included in the case documents.
