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O'FALLON, ILL. — A man from O’Fallon, Ill. admitted lying on his application for a nearly $500,000 loan through a coronavirus pandemic assistance program, prosecutors said Wednesday.

Jason E. Spengler, 45, applied for a Paycheck Protection Program loan in 2020 but did not disclose that his company, Spengler Plumbing Co., was in bankruptcy, prosecutors said. Spengler was not eligible for a PPP loan because of the bankruptcy, they said, adding that the first question on the form asks if applicants are "presently involved in any bankruptcy."

Spengler also failed to notify the bankruptcy judge. He was required to get authorization from the bankruptcy court before incurring any new unsecured debt, they said. 

Spengler got a $487,095 loan in April 2020.

Spengler pleaded guilty Wednesday in U.S. District Court to one felony count of making a false statement on a federal loan application. He is scheduled to be sentenced August 18.

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Robert Patrick • 314-340-8131

@rxpatrick on Twitter

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