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Because his loan was intended for business purposes, using the funds for a personal Pokémon card purchase violated federal regulations. The authorities charged him with wire fraud, carrying penalties of up to 20 years in prison and fines up to $250,000.
This case is not isolated; others have used relief funds for luxury cars, real estate, or high-end electronics. However, purchasing a single Pokémon card with government aid stands out as particularly bewildering, emphasizing the absurdity of some abuse cases.
The Broader Issue of Pandemic Loan Fraud
Vinnie's case highlights larger systemic issues that came to light during the pandemic. While many legitimate small business owners struggled for assistance, some exploited the program's loopholes. This included: