Kansas City, MO, February 5, 2026
Three men from the Kansas City area have been indicted for allegedly submitting fraudulent Paycheck Protection Program (PPP) applications, seeking over $447,000 in loans. This case emphasizes the need for integrity and oversight within the local business community to ensure that federal aid is directed to legitimate recipients, crucial for economic growth during challenging times.
Kansas City, MO
Safeguarding Prosperity: Local Indictments Highlight Importance of Business Integrity and Economic Oversight
A recent federal indictment has brought to light charges against three Kansas City area men in connection with alleged fraudulent applications for Paycheck Protection Program (PPP) loans, a federal initiative designed to support businesses during unprecedented economic challenges. This development underscores the critical importance of integrity within the Kansas City MO business community and the ongoing efforts to ensure accountability in programs intended to foster economic stability and growth.
The Paycheck Protection Program, established under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, was a vital lifeline for countless Kansas City small business owners and Missouri MO entrepreneurs. It aimed to provide essential capital to help businesses retain employees and cover operational costs during a period of significant uncertainty. While the vast majority of recipients utilized these funds responsibly to navigate a challenging economic landscape, instances of alleged misuse serve as a reminder that robust oversight is essential to protect taxpayer dollars and maintain public trust in government-supported economic initiatives. Ensuring that aid reaches its intended recipients – hardworking business owners and their employees – is paramount for genuine economic growth.
Charges Filed in Federal Court
On January 28, 2026, a federal grand jury in Kansas City, Missouri, returned separate sealed indictments against Robert Turner of Kansas City, Mark Crosby of Kansas City, and Earl Howard of Grandview. These indictments were subsequently unsealed following the individuals’ initial court appearances this week. The charges allege that these three men were involved in schemes to obtain over $447,000 in fraudulent PPP loans.
The Paycheck Protection Program was a Nationwide initiative providing forgivable loans to small businesses to help them keep their workforce employed during the COVID-19 pandemic. The program’s success depended heavily on accurate financial reporting from applicants to ensure funds were allocated appropriately.
Details of the Alleged Schemes
According to the federal indictments, Robert Turner, through his company, Handy Hands Services LLC, allegedly submitted a fraudulent application for a PPP loan. Based on what are described as false payroll records, Turner’s company received a $324,900 PPP loan.
Mark Crosby is accused of submitting fraudulent applications for two separate companies. His firm, Crosby Auto LLC, allegedly received $71,400, while MSC & Sons Trucking LLC received $20,832. Both amounts were reportedly based on false payroll records submitted with the applications.
Earl Howard, through his company, Turn 2 LLC, also allegedly submitted a fraudulent PPP loan application, resulting in his company receiving a $30,800 PPP loan.
Collectively, these alleged fraudulent applications resulted in more than $447,000 in PPP loans being issued to these three borrowers, who are deemed ineligible by the indictments. It is further alleged that these funds were subsequently forgiven by the Small Business Administration (SBA), despite not being used for the purposes specified by the PPP. These charges represent accusations, and guilt has not been proven; evidence must be presented to a federal trial jury to determine guilt or innocence.
The Imperative of Honest Enterprise
The framework of a free market economy thrives on trust and transparency. Government programs, while intended to support and stimulate economic activity, rely on the honesty of participants. Instances of alleged fraud, such as those detailed in these indictments, can divert crucial resources from legitimate businesses and hardworking individuals who adhered to the program’s guidelines. For Kansas City MO business and the broader Midlands economic growth, maintaining an environment of integrity is vital. This situation highlights the ongoing need for vigilant oversight and accountability measures to protect the integrity of financial assistance programs.
Oversight and Accountability in Economic Programs
The investigation into these alleged fraudulent activities was conducted by IRS-Criminal Investigation and the Kansas City, Mo., Police Department. This collaborative effort by federal and local authorities demonstrates a commitment to upholding the rule of law and safeguarding economic programs. Such investigations serve to reinforce the notion that those who attempt to exploit systems designed to help the community will face scrutiny. For entrepreneurs and small businesses operating legitimately, this commitment to accountability ensures a more level playing field.
Fostering a Resilient Business Climate
While these charges bring attention to potential abuses, it is important to remember that the entrepreneurial spirit and resilience of Kansas City small business owners remain a cornerstone of the local economy. The overwhelming majority of businesses sought and utilized PPP loans responsibly, demonstrating their commitment to their employees and the community. By addressing instances of fraud, authorities help to preserve the integrity of future assistance programs and reinforce the importance of ethical conduct in business. A business environment where accountability is clear encourages genuine innovation and sustained economic growth.
Looking Ahead: Supporting Legitimate Enterprise
The ongoing legal proceedings will determine the outcomes of these cases. Regardless of the individual verdicts, the broader message for the Kansas City area is clear: a commitment to ethical business practices and transparent dealings is fundamental to sustainable prosperity. For Missouri MO entrepreneurs, the emphasis remains on fostering an environment where innovation and honest effort are rewarded, and where vital economic support programs are protected from abuse. Supporting local businesses that operate with integrity is crucial for building a stronger, more vibrant Kansas City.
Frequently Asked Questions (FAQ)
Q: What is the Paycheck Protection Program (PPP)?
A: The Paycheck Protection Program was a Nationwide initiative providing forgivable loans to small businesses to help them keep their workforce employed during the COVID-19 pandemic. It was established under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Q: Who are the three Kansas City area men indicted in the PPP loan fraud case?
A: The three men indicted are Robert Turner, Mark Crosby, and Earl Howard.
Q: What are the specific companies and alleged loan amounts involved in these indictments?
A: Robert Turner’s company, Handy Hands Services LLC, allegedly received a $324,900 PPP loan. Mark Crosby’s companies, Crosby Auto LLC and MSC & Sons Trucking LLC, allegedly received $71,400 and $20,832 respectively. Earl Howard’s company, Turn 2 LLC, allegedly received a $30,800 PPP loan.
Q: What is the total alleged fraudulent amount in this case?
A: The federal indictments allege that more than $447,000 in fraudulent PPP loans were issued to these three ineligible borrowers.
Q: Were these alleged fraudulent loans forgiven?
A: Yes, it is alleged that all of these loans were forgiven by the SBA even though the funds were not used for the purposes specified in the PPP.
Q: Which agencies investigated this case?
A: This case was investigated by IRS-Criminal Investigation and the Kansas City, Mo., Police Department.
Key Features of the PPP Loan Fraud Indictments
| Feature | Details | Scope |
|---|---|---|
| Defendants Indicted | Robert Turner, Mark Crosby, Earl Howard | Local (Kansas City metropolitan area) |
| Total Alleged Fraudulent Amount | More than $447,000 | State-level (Missouri) |
| Program Involved | Paycheck Protection Program (PPP) under the CARES Act | Nationwide |
| Companies and Alleged Loan Amounts (Turner) | Handy Hands Services LLC: $324,900 | Local (Kansas City) |
| Companies and Alleged Loan Amounts (Crosby) | Crosby Auto LLC: $71,400; MSC & Sons Trucking LLC: $20,832 | Local (Kansas City) |
| Companies and Alleged Loan Amounts (Howard) | Turn 2 LLC: $30,800 | Local (Grandview) |
| Basis of Fraudulent Applications | False payroll records and fraudulent applications | State-level |
| Loan Forgiveness Status | Allegedly forgiven by the SBA despite improper use | Nationwide |
| Investigating Agencies | IRS-Criminal Investigation and Kansas City, Mo., Police Department | Federal and Local |
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Author: STAFF HERE KANSAS CITY WRITER
The KANSAS CITY STAFF WRITER represents the experienced team at HEREKansasCity.com, your go-to source for actionable local news and information in Kansas City, Jackson County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as American Royal World Series of Barbecue, Dia De Los Muertos, and Planet Anime Kansas City. Our coverage extends to key organizations like the Greater Kansas City Chamber of Commerce and United Way of Greater Kansas City, plus leading businesses in healthcare, finance, and entertainment that power the local economy such as Children's Mercy Hospital, Government Employees Health Association, and AMC Entertainment. As part of the broader HERE network, including HEREStLouis.com, we provide comprehensive, credible insights into Missouri's dynamic landscape.
