A Bryan man who pleaded guilty in federal court six months ago learned his punishment this week for making fraudulent statements to obtain pandemic loans for his College Station nightclub.
According to the U.S. attorney’s office in Houston, 46 year old Keith Johnson admitted that he lied on multiple documents when applying for a $123,000 dollar payroll protection program loan.
Prosecutors say the money never reached employees of the former Southern’s nightclub, which failed during the pandemic.
When he applied for the pandemic loan, Johnson was under indictment in Harris County for theft of more than $300,000 dollars associated with construction fraud from Hurricane Harvey. The indictment made Johnson ineligible to receive PPP money.
Following Monday’s court appearance, Johnson was allowed to remain out on bond until a decision is made where he will serve a 14 month sentence in a federal prison. That will be followed by three years of supervised release.
Prosecutors did not say in their news release whether Johnson has to reimburse the federal government.