Sioux Falls Man Sentenced for False Statement to a Financial Institution

SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Sioux Falls, South Dakota, man convicted of False Statement to a Financial Institution. The sentencing took place on April 15, 2024.

James Bunker, d/b/a Genuine Builders, Inc., age 53, was sentenced to 21 months in federal prison, followed by three years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100. Bunker has also agreed to repay loans to First State Bank that he received under the Main Street Lending program and to the U.S. Small Business Administration for loans he received under the Economic Injury Disaster Loan program. Bunker has also agreed to forfeit $20,000 in U.S. currency and properties located in Sioux Falls.

Bunker was indicted by a federal grand jury in April of 2021. He pleaded guilty on November 8, 2023.

The conviction stemmed from an incident on January 8, 2021, when Bunker knowingly made a false statement and report for the purpose of influencing the action of American Bank and Trust in connection with an application and loan under the Paycheck Protection Program. Bunker knew that to be eligible for a second draw loan under the Paycheck Protection Program, a 25% revenue reduction must exist in at least one quarter of 2020 as compared to that same quarter of 2019. In order to meet that reduction for Genuine Builders, Inc., Bunker worked with an employee to move certain invoices that had previously been classified as accruing in quarter four of 2020 into quarter three of 2020 in a profit and loss statement. By doing so, Bunker intended to falsely reduce Genuine Builders, Inc.'s reported revenue for quarter four of 2020, which then allowed Genuine Builders, Inc. to illustrate a more than 25% reduction in quarter four of 2020 as compared to quarter four of 2019. Bunker then utilized this information to submit an application to American Bank and Trust on or about January 8, 2021, seeking to obtain a second draw loan under the Paycheck Protection Program for Genuine Builders, Inc. in the amount of $1,318,023.00.

"This sentence sends a strong message that if you lie and cheat to gain access to government funds you will be held accountable, and as in Mr. Bunker's case, you can go to jail," said IRS Criminal Investigation (CI) Special Agent in Charge Thomas F. Murdock, St. Louis Field Office. "Along with our law enforcement partners, CI is committed to investigating as many pandemic fraud cases as possible to bring those who misused the programs to justice."

This case was investigated by the FBI, the IRS, and the U.S. Attorney's Office. Assistant U.S. Attorney Ann M. Hoffman prosecuted the case.

Bunker was allowed to self-report at a future date.