Restaurant Owner Faces Repayment After Pandemic Relief Fund Misuse
A Shocking Misappropriation of Funds
In a startling case of misappropriation, the owner of Hillbilly’s BBQ, Bobby Gerald Duncan, has been ordered to repay an astounding $1.5 million after authorities accused him of misusing pandemic relief funds intended to support struggling small businesses. The judgement was announced by U.S. Attorney Russ Ferguson, revealing a disturbing tale of deceit and financial misconduct during a time when many businesses were fighting to survive.
Background on the Misuse of Relief Funds
Bobby Duncan and his restaurant, Hillbilly’s BBQ, are under scrutiny for receiving $762,903 in pandemic relief funds through multiple programs, including the Economic Injury Disaster Loan (EIDL) and two Paycheck Protection Program (PPP) loans. Unfortunately, rather than utilizing these funds for their intended purpose—such as payroll and essential business expenses—Duncan chose a different path.
The Scheme Unfolds
The complaint alleges that Duncan misappropriated these relief funds to serve his personal interests, specifically for the acquisition of a FedEx business. The series of transactions that unfolded is not just alarming; it’s also a cautionary tale about the misuse of public funds designed to help struggling businesses.
Initial Transfer: The scheme began when Duncan transferred $100,000 from Hillbilly’s BBQ corporate account to a personal account whimsically titled "Vacation Account". This maneuver effectively concealed the funds’ true nature.
Boosting Credit for a Loan: In an even more convoluted move, he added a longtime friend as an account holder to artificially inflate the friend’s credit score. This was an attempt to secure a separate Small Business Administration (SBA) loan for the FedEx business purchase.
- Final Purchase: When efforts to boost his friend’s credit score failed, Duncan opted to write large checks directly from Hillbilly’s BBQ business account to purchase the FedEx business outright for $750,000.
Legal Consequences and Impact
The settlement reached between Duncan and federal authorities not only seeks to recover misused funds but also stands as a stark reminder. U.S. Attorney Ferguson emphasized the critical purpose of pandemic relief funds: “Pandemic relief funds were meant to provide a financial lifeline to small businesses struggling to stay afloat during the unprecedented COVID crisis. Where those funds were misused, we will pursue their return as part of our ongoing effort to curb waste, fraud, and abuse of taxpayer money.”
Conclusion: Lessons Learned
The case of Bobby Duncan and Hillbilly’s BBQ illustrates the pressing need for transparency and accountability in the distribution of government aid. As small businesses continue to navigate uncertain waters post-pandemic, the importance of using relief funds responsibly cannot be overstated. Misuse of such funds not only betrays the system but also places a heavier burden on genuine business owners striving to rebuild and recover.
For more information on how to properly utilize pandemic relief funds, check out resources from the U.S. Small Business Administration and avoid falling into similar traps like Duncan did.
