St. Petersburg trio accused of using PPP loans to fund drug operation

ST. PETERSBURG, Fla. - Several suspected drug dealers in St. Petersburg are accused of cheating the government out of funds aimed at helping small businesses during the COVID-19 pandemic.

Dante Payne, Russell Jones and Kenneth Davis Jr. are all accused of applying for and receiving Small Business Administration loans through the Payroll Protection Program, which was set up to help small business owners stay afloat.

According to police, the men used the money to help fund their drug operation.

"They were willing to take a step further and defraud financial institutions and take money from the federal government for these fake businesses and fake employees," said Yolanda Fernandez, a St. Pete Police spokesperson.

According to arrest documents, Payne, 21, claimed he owned a landscaping business that doesn't exist and received about $21,000 to cover payroll and overhead expenses. Davis, 24, is accused of receiving the same amount for his fake company. Investigators said Jones, 26, received about $9,500 to help with a non-existent barbershop.

All three were arrested as part of a major drug round-up announced by St. Pete Police last week that sent about 30 suspected dealers and users to jail.

"This is really kind of a different level of sophistication," Fernandez said. "They knew how to get they knew what to what paperwork to put in for. They knew the ins and outs, what they needed to say in order to get these loans and then they just used them for whatever they wanted to."

The news stunned small business owners who said they desperately needed the loans to keep their doors open.

"I am floored at it. I can't believe people would do that," said Jill Whelan, who owns Cakes by Carolynn in St. Pete and received nearly $40,000 in loans to help her business stay afloat. "I got to pay [my employees] the whole time we were close to. I paid all my bills and everything was taken care of because of it. We would have been in serious trouble if we didn't get that."

Fernandez said a fourth suspected drug dealer is also now accused of defrauding the government to obtain an SBA loan. A spokesperson for the SBA told FOX 13 the agency doesn't comment on active investigations. Fernandez, however, said these men could eventually face federal charges.