SAN ANTONIO — A grand jury in San Antonio indicted a man now charged with 11 counts of wire fraud and money laundering after he allegedly defrauded federal COVID relief programs.
Court documents accuse 42-year-old James Michael Bergeron of misrepresenting the number of employees and average monthly payroll at several businesses he controlled in order to receive millions of dollars from the Paycheck Protection Program and the Restaurant Revitalization Fund that were designed to help small business owners. He's accused of spending the money on real estate, vehicles and retail investment products.
The indictment says Bergeron is the owner of OTOMOB Investments Inc., American Light LLC, AZ Plate Restaurant Group LLC, Pizzas by Scarpas LLC, and NM Plate Restaurant Group LLC. It says that in July of 2020 he submitted numerous fraudulent PPP loan applications, and again in February of 2021. In May of 2021 he's accused of lying about the revenue for NM Plate to secure funds from the RRF.
He's accused of taking the money and spending it on himself rather than his businesses. The indictment says he spent $40,002 to pay the mortgage on his 4,000 square-foot home in north San Antonio, $90,417 from OTOMOB's bank account on a 2020 Lincoln Navigator, and $30,000 on a 2023 Genesis GV80. It says he's subject to forfeiting the home, vehicles, and money in ten bank accounts including two personal accounts worth over $2 million depending on the judgement in the case.
"Bergeron is charged with five counts of wire fraud, one count of false statement, three counts of engaging in a monetary transaction over $10,000 using criminally derived proceeds, and two counts of concealment money laundering," said U.S. Attorney Jaime Esparza of the Western District of Texas. "If convicted, he faces a maximum penalty of thirty years in prison."
Bergeron reportedly made his initial court appearance Monday before a U.S. Magistrate.
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