An Oregon man is heading to federal prison after using COVID-19 relief funds to invest in Tesla (TSLA) stock.
The man submitted numerous CARES Act loan applications using business names and personal identification information of relatives and businesses associated without their consent.
In addition, Lloyd submitted false IRS forms listing 2019 wages supposedly paid by entities he controlled.
After these loans and IRS forms, Lloyd received more than $3.4 million from the Small Business Administrations COVID-19 assistance programs.
He then used those funds to purchase 15,740 shares of Tesla in 2020. In addition, he bought more than 25 properties throughout Oregon and California.
Altogether, federal authorities seized more than $18 million worth of securities and properties. The stake in Tesla alone was worth $16 million.
The court charged Andrew Lloyd of Lebanon, Oregon, with bank fraud, money laundering and aggravated identity theft. Mr Lloyd pleaded guilty to all three charges.
He received four years in federal prison with five years of supervised release, according to Business Insider.
In addition, he was ordered to pay more than $4 million in restitution and foreign 25 properties. He will also forfeit over 15,0000 shares of Tesla stock he bought with the COVID funds.