As De Pere Company Under FBI Fraud Investigation, Bank Breaches Received PPP Funds
DE PERE, Wisconsin (WBAY) – Action 2 News has learned that a company still under FBI investigation for wire fraud and bank violations has received money from the federal government to help it survive to the COVID-19 pandemic.
That company is Summit Contracting Inc., based in De Pere.
In a first alert investigation almost a year ago, we began to uncover consumer complaints and investigations of possible entrepreneur fraud related to this business.
The FBI launched an investigation into wire fraud and banking breaches in June 2019.
In February of this year, Summit Contracting accepted civil injunction in federal court, saying he would not continue with his fundraising practices.
While the FBI investigation is still ongoing, no charges have been filed against the company.
Summit’s attorney tells us the company is still in business and used the taxpayer-funded Paycheck Protection Program loan to keep employees and hire more who were laid off before the COVID-pandemic. 19 does not strike.
Data released by the Small Business Administration indicates that Summit Contracting Inc. received between $ 150,000 and $ 350,000 through a PPP loan.
The exact amount is not shown in the data, and Summit’s attorney is not telling us.
The contracting company is listed in SBA data as being owned by women, but Summit’s attorney, Brandon O’Bryon, told us over the phone that he believed it was a mistake. writing and that Chad Schampers still ran Summit, but in a scaled-down version.
O’Bryon says the company is no longer doing big roofing work, but instead dealing with low-key renovations.
SBA records show that Summit was approved for the PPP loan on April 10.
Nine days earlier, on April 1, Summit responded to a consumer complaint on the Better Business Bureau website, writing that the company “is now bankrupt” and “closed.”
The BBB tells us that it has received 81 inquiries about Summit in the past 30 days.
At about the same time, we received several calls and emails from viewers asking where the FBI’s investigation was and whether, as former clients, they should pay a finance company for roofing work which they claimed had never been completed.
This was the basis of the civil injunction filed in federal court where prosecutors said Summit was carrying out what he called “a fraudulent scheme”, distorting funding terms, making false claims that the job was done, then withdrawing the payment without the customer’s knowledge.
Summit agreed not to do this kind of business in February, and the civil case was closed.
A criminal investigation is still open.
“The FBI recently sent me this letter to reassure me that we are definitely in an active case,” Mary Klimczyk told Action 2 News.
She showed us the letter she received from the FBI in mid-July, stating: “A criminal investigation can be a long-drawn-out endeavor and, for several reasons, we cannot update you on its progress at this time. .
Klimczyk showed us the mess in his vacation rental last year after saying Summit started, but never finished replacing his roof.
The documents she gave to investigators show that the finance company paid Summit for all of the work, and now that finance company is calling Klimczyk to tell him it has to pay.
“We will hold you responsible for this loan. I said, your loan is a fraud. And I said, I won’t pay you another dime until I hear differently from the federal government, ”says Klimczyk of his phone calls with this finance company.
She is annoyed to learn that Summit has received over $ 100,000 in loan from the federal government.
“I thought it was the craziest, craziest thing I had ever heard,” she said. “Myself, as a small business, couldn’t even get this loan and have been in business for 30 years. I was just shocked when you told me that.
We read the fine print of PPP loans, which states that businesses cannot get a loan if they engage in illegal activities or if the owner is formally charged, charged or jailed.
However, it does not say anything about the investigations initiated by the SBA national lender, ReadyCap, which in a press release claims to have approved more than $ 2 billion in PPP loans, is listed as the Summit lender.
SBA data indicates the loan would preserve 15 jobs.
Summit’s attorney says the contracting company is using the loan to maintain core employees and rehire some who were laid off before the pandemic, but adds the company understands loans can only be canceled if properly documented. that the money was used to keep the business running during the pandemic.
O’Bryon, the attorney for Summit, tells us that if clients have concerns about past projects with Summit, they can call him about it.
The FBI still accepts information from anyone wishing to tell investigators about their experience with Summit Contracting.
Click here transmit information to investigators.
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