Date: Jan. 24, 2024 Contact: newsroom@ci.irs.gov ST. LOUIS — A former professional basketball player has been arrested in Missouri after an indictment accused him of fraudulently obtaining pandemic relief funds. Lorenzo Gordon of Chesterfield, Missouri, was indicted in U.S. District Court in St. Louis January 17 on three counts of wire fraud and one count of theft of government money. He pleaded not guilty to the charges Wednesday. The indictment alleges that Gordon fraudulently applied for loans from the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) Program, which were intended to help businesses and their employees during the COVID-19 pandemic. The indictment says Gordon applied for an EIDL loan for Logo Fitness LLC on June 19, 2020, falsely claiming the company had gross revenues of $96,475 in the 12 months prior to the COVID pandemic. He received a $9,000 advance and a loan of $39,200, the indictment says. On June 22, 2020, Gordon applied for an EIDL loan for Elite 50 Basketball Training LLC, falsely claiming gross revenues of $234,656 in the 12 months prior to the pandemic, the indictment says, and resulting in a $10,000 advance and a $107,300 loan. Both companies were only formed in 2020, the indictment says. The indictment also says that Gordon applied for a PPP loan on April 16, 2021, falsely stating he was sole proprietor of Lorenzo Gordon, janitorial services. Gordon received a $20,832 loan. Each wire fraud charge is punishable by up to 20 years in prison, a $250,000 fine, or both. The theft charge is punishable by up to 10 years in prison and the same fine. Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty. The Internal Revenue Service Criminal Investigation (CI) and the Social Security Administration Office of Inspector General investigated the case. Assistant U.S. Attorney Diane Klocke is prosecuting the case. CI is the criminal investigative arm of the IRS, responsible for conducting financial crime investigations, including tax fraud, narcotics trafficking, money-laundering, public corruption, healthcare fraud, identity theft and more. CI special agents are the only federal law enforcement agents with investigative jurisdiction over violations of the Internal Revenue Code, obtaining a more than a 90 percent federal conviction rate. The agency has 20 field offices located across the U.S. and 12 attaché posts abroad.
