03/30/2026
🚨 WARNING: SBA Loans & Bankruptcy 🚨
A recent federal case in Florida shows how serious things can get when SBA loans and bankruptcy are handled improperly. A man was sentenced to 4 years in prison after fraudulently obtaining COVID relief funds and then trying to hide assets during bankruptcy.
⚠️ Here’s what you NEED to know:
👉🏾SBA funds (PPP, EIDL, etc.) must be used ONLY for business purposes
👉🏾Using funds for personal expenses can be considered fraud
👉🏾Bankruptcy does NOT erase fraud, it can lead to criminal charges
👉🏾You MUST fully disclose all assets, income, and transactions
The government is actively cross-checking:
•Loan applications
•Tax returns
•Bank activity
•Bankruptcy filings
🚫 Trying to “wipe it away” in bankruptcy without proper documentation can backfire badly.
⚖️ If you’re filing bankruptcy with SBA loans:•Make sure all funds were used properly
•Keep documentation for everything
•Be completely honest with your attorney
TALLAHASSEE, FLORIDA – Sean Eric Thompson, 44, formerly of Pace, Florida, was sentenced to four years in prison after previously pleading guilty in federal court to five counts of wire fraud, three counts of making a false statement, six counts of money laundering, and three counts of bankruptcy f...