Is FOSTER FUELS INC. a Scam?

 

PPP Loan #4152558402
FOSTER FUELS INC. is a Sole Proprietorship located at Brookneal, VA with 191 employees. During round 1 of the paycheck protection program, FOSTER FUELS INC. requested a PPP loan for 2000000 USD. They were approved on 02-06-2021 by the SBA for an amount of 2000000 USD. The loan was facilitated by Bank of the James, LYNCHBURG, VA. Of the approved amount, FOSTER FUELS INC. has received an amount of 1999998 USD for payroll proceeds.
 PPP Loan details for FOSTER FUELS INC.
Loan Amount 2000000 USD
Current Approved Amount 2000000 USD
Loan Tenure 60 months
Loan Approved on 11/19/2021
Area Code 24528-2521
SBA Code 304
NAICS Code 424720
Lender Bank Bank of the James
Lender Bank City LYNCHBURG
Lender Bank State VA
 Demographic details for FOSTER FUELS INC.
Race Unanswered
Ethnicity Unknown/NotStated
Gender Unanswered
Veteran Unanswered
Non Profit
Business Age Existing or more than 2 years old
Jobs Reported 191

How FOSTER FUELS INC. Claims To Have Used Their PPP Funds of 2000000 USD

As we have discussed earlier, FOSTER FUELS INC. received a substantial amount of money through the SBA program. But have they used it correctly? Let’s analyze.

1FOSTER FUELS INC. claims to have spent 2000000 USD to pay salaries of 191 employees.

 

2FOSTER FUELS INC. claims to have have been honest, ethical and deserving of this PPP Loan (4152558402) of 2000000 USD.

 

3FOSTER FUELS INC. claims to not have misused the PPP Loan in any ways.

 

These amounts were reported to the SBA by the company. Often, however, whistleblowers & employees reveal that their employers have abused their funds. If you think FOSTER FUELS INC. has done something nefarious, then report them here using the review box at the bottom of the page.


What Constitutes A PPP Loan Scam? 

The primary goal of PPP loans was to help businesses survive the pandemic and ensure that people don’t lose their employment. Businesses who took out these loans could spend the borrowed sum on:

    • Salaries, bonuses, commissions, wages (maximum $100,000 per annum per employee)
    • Insurance premiums
    • Employee allowances (sick leaves, medical, parental, and vacation pay)
    • Operational expenditure
    • Utility payments
    • Mortgage interest payments

Federal authorities are aggressively targeting individuals and companies for PPP loan fraud. Launched in March 2020 in response to the economic uncertainty that was triggered by the novel coronavirus (COVID-19) pandemic, the PPP made hundreds of millions of dollars in federal funding available to businesses struggling as a result of the pandemic. Loans issued under the PPP carry a 1% interest rate, but the loans are completely forgivable if certain conditions are met.

The low-cost (and potentially free) funds offered under the PPP have proven to be attractive not only to struggling businesses, but also to larger companies and scam artists. This has led to worry of widespread fraud (and a few highly-publicized cases of fraudulent PPP loan applications), and it has forced numerous federal agencies to turn their attention to combatting PPP loan fraud.

Penalties For Abusing Or Wasting The PPP Funds:

When a person is charged with PPP loan scam charges, they can face multiple civil and criminal penalties. Even a single PPP loan fraud case might involve multiple criminal laws.

You can face a penalty of up to 20 years behind bars.
  • The first charge would be wire fraud. It invokes 18 USC Sec. 1343 and involves the use of a phone or internet to scam another party by using false statements.
  • Bank fraud charges might also be filed against you. It invokes 18 USC Sec. 1344 and involves making false statements to a financial institution such as a bank. The penalty for this charge goes up to 30 years behind bars.
  • A PPP loan fraud also includes making false statements to a financial institution, a federal crime. It invokes 18 USC Sec. 1014 and its violation leads to a jail 14 of up to 30 years.
  • Finally, when you commit a PPP loan scam, you violate 18 USC Sec. 1349, conspiracy to commit fraud. It is a criminal offense when someone colludes with others in violating or attempting to violate federal laws whether they obtained money or not.
The authorities have been rather vigilant in finding people who committed PPP loan frauds.

The above are just two instances of people getting caught by the authorities for this scam. Here’s another:


Frequently Asked Questions About PPP Loan Scam

Did FOSTER FUELS INC. get a PPP loan?

Yes. FOSTER FUELS INC. applied and was granted a PPP loan

How much PPP Loan did FOSTER FUELS INC. receive?

2000000 USD

Where is FOSTER FUELS INC. located?

FOSTER FUELS INC. is located in Brookneal,VA

How much did FOSTER FUELS INC.'s PPP loan went towards paying salaries?

As per FOSTER FUELS INC., 1999998 USD went towards payroll proceeds

Which bank financed FOSTER FUELS INC.'s PPP Loan?

Bank of the James in LYNCHBURG,VA financed FOSTER FUELS INC.’s PPP Loan

What is the term for FOSTER FUELS INC.'s PPP loan?

60 months

How many employees were reported by FOSTER FUELS INC. in their PPP loan application?

191

How much of FOSTER FUELS INC.'s PPP loan was forgiven?

2013222.22 USD was forgiven on 10-12-2021


Footnotes and Citations

All information displayed on this page is publicly available information under PPP loan guidelines, in compliance with 5 U.S.C. § 552 (Freedom of Information Act) and 5 U.S.C. § 552a (the Privacy Act) and is published unmodified, as provided by the SBA. IsItaScam.com does not modify the data and makes no claims regarding its accuracy, nor will entertain any request to remove any entry.

The inclusion of a person or entity in the IIAS Database is not intended to suggest or imply that they have engaged in illegal or improper conduct related to PPP Loan (scam). IIAS intends to offer a platform where suspicious activities related to PPP loan can be shared and discussed in a secure environment. Please contact us if you find an error in the database.


What FOSTER FUELS INC.’s Employees and Consumers can do to report potential PPP Scam?

There is no record of FOSTER FUELS INC. committing any sort of PPP Scam reported anywhere. However, that can change quickly, and this page allows employees, citizens and consumers to share information on FOSTER FUELS INC. they are privy to, and expose any/all wrongdoings.


7.1 Total Score
User Rating for FOSTER FUELS INC.

FOSTER FUELS INC. took out a PPP loan worth $2000000 for Payroll Processing for it's 191 employees. As tax-payers, we need to hold businesses accountable and ask serious questions. Our rating on FOSTER FUELS INC. is based on multiple factors, including publicly available information, reviews and user notifications.

Trust
4.8
Accountability
5.5
Transparency
5.5
Risk
5.8
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