Phoenix Police Officer Charged With P3 Loan Fraud After Receiving $ 1.2 Million: Report

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Constable Toni Richardson has resigned her post in Phoenix and has been charged with money laundering and conspiracy.

Uncle Sam is not having fun when it comes to Paycheck Protection Program (P3) loans. They were instituted during the quarantine last year to help keep small businesses afloat, but by the thousands people have started to take advantage of the government business loan. We’ve previously reported that NFL players, singers, and reality stars have received heavy prison terms and fines for falsifying records or spending money on personal matters. In Phoenix, it was reported that a police officer was charged with defrauding the system of over $ 1 million.

According to Phoenix New TimesAgent Toni Richardson raised $ 1,276,500 in forgivable loans for her non-profit, The Lotto Club.

Tasos Katopodis / Stringer / Getty Images

However, she and her business partner are accused of using the finances for personal gain. The Lotto Club would be listed as a “social club” which acts as a charitable effort for veterans and on loan application Richardson claimed it employed 85 people. Yet prior to the request, The Lotto Club hadn’t listed any employees and didn’t even have a payroll. The association’s bank account was at zero dollars.

Richardson’s business partner, Blu Mitchell, pulled out a check for $ 200,000 in his name, along with a subsequent transfer of $ 25,000. Mitchell, it seems, runs several nonprofits in the Phoenix area, including Sigma CUTS, which claims to perform a wide variety of philanthropic work across the United States.

Reports say Richardson has since resigned following charges of bank fraud, conspiracy and money laundering. Because she resigned, her ministry said it did not plan to launch an internal investigation.

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