A federal grand jury has charged a Springfield business owner with multiple counts of bank fraud, false statements on loan applications, and money laundering tied to Paycheck Protection Program loans totaling $316,062, while alleging the misuse of more than $35,000 in PPP proceeds.
A federal indictment names Jason L. Hemingway, 47, as the defendant in a scheme to obtain two PPP loans for a business called Principal Transfer Group, LLC. Prosecutors allege the loan applications contained false ownership and payroll claims and that Hemingway signed documents using another person’s name. The indictment charges two counts each of bank fraud and making a false statement on a loan application, plus three money laundering counts.
The paperwork says Hemingway submitted the first loan application electronically on Feb. 9, 2021, and claimed the business had an average monthly payroll of $63,212 and employed 25 people. Those details are presented in court documents as false, and the filing says Hemingway received $158,031 in PPP funds from that application. The second application, filed April 8, 2021, is accused of containing similarly false information and of falsely certifying prior proper use of earlier PPP proceeds.
On the second application, prosecutors say Hemingway again identified someone else as the business owner and asserted the business employed eight people while reporting the same $63,212 monthly payroll figure. That application allegedly resulted in another $158,031 in PPP loan proceeds. The indictment highlights the repeated pattern of submitting false certifications to secure federal loan money meant to support payroll and eligible business expenses.
Investigators say the indictment shows the loan money was diverted for personal or unrelated uses, not solely for authorized payroll, mortgage interest, lease, or utility payments. Among the transfers listed, $11,000 is said to have gone into the account of another business owned by Hemingway, identified as 417 Print Shop, LLC. An additional $11,000 is alleged to have been moved into Hemingway’s personal bank account, and $13,851.16 is reported to have been transferred to a Robinhood account.
Robinhood is named in the documents as the financial services platform where trading and investing activity can take place, and the filing treats activity there as part of the alleged diversion of PPP funds. The indictment also contains a forfeiture claim seeking the return of property linked to the alleged fraud. Prosecutors ask for at least a $316,062 money judgment tied to the fraudulent loans and an extra $35,851.16 judgment for proceeds from the alleged laundering.
The filing stresses that the charges remain allegations until proven beyond a reasonable doubt at trial. As with any federal indictment, the government must present its evidence to a jury, and the defendant is presumed innocent unless and until guilt is established in court. The documents and the process described reflect the next steps in a federal criminal matter rather than a final judgment.
The case is being handled by the U.S. Attorney’s Office, with Assistant U.S. Attorney Casey Clark listed as the prosecutor on the indictment. Investigations were carried out by the IRS-Criminal Investigation division and the Federal Bureau of Investigation, agencies that have led reviews of PPP misuse across the country. Those investigative agencies regularly coordinate on matters that involve alleged fraud against federal pandemic relief programs.
The factual allegations in the indictment lay out dates, dollar amounts, and account transfers intended to support the charged offenses. Prosecutors provide specifics about the two applications, the certifications made, and the movement of funds, and the forfeiture section ties the alleged proceeds to potential financial penalties. Those details will form part of the evidentiary picture if the case proceeds to trial.
Defendants in federal financial crime cases often face a combination of criminal exposure and civil or forfeiture claims that seek repayment of funds. The indictment’s requested money judgments would, if imposed after conviction, aim to restore government losses traced to the alleged scheme. Meanwhile, the criminal counts carry potential penalties that depend on statute and sentencing guidelines if there is a conviction.
Public filings like this one typically trigger a sequence of court appearances, including arraignment and pretrial proceedings, where defense counsel can challenge the government’s allegations. The indictment does not itself prove wrongdoing; it initiates a prosecution and informs the defendant of the charges. The next phase will involve the court calendar, discovery exchanges, and possible motions before any jury trial.
Local communities and small business owners who relied on PPP money during the pandemic have followed enforcement efforts closely, given the program’s scale and purpose. The government’s focus on alleged abuses reflects broader scrutiny of how emergency relief funds were distributed and used. Enforcement officials say pursuing suspected fraud preserves integrity in aid programs and deters future misuse.
Anyone following this case should expect court records and hearings to provide more detail over time as the matter moves through the federal system. The indictment is the formal starting point for prosecution, and subsequent filings will reveal the evidence the government plans to present. For now, the court process will determine how the charges are resolved.
