Date: July 18, 2023 Contact: newsroom@ci.irs.gov Wichita, KS — A Kansas man pleaded guilty to money laundering in connection with a federal relief program designed to help United States business owners during the COVID-19 pandemic. According to court documents, Timothy Dale Warren of Haysville served as owner of Titan Medical Center which offered chiropractic care, school sports physicals, and other services in Wichita. In May 2020 and April 2021, Warren submitted false documents to banks in order to fraudulently obtain two loans from the Small Business Administration (SBA) under the Paycheck Protection Program (PPP) of the CARES Act. In August 2020, the defendant converted $35,500.00 in criminally obtained funds into a cashier's check then deposited money into a business bank account at another financial institution. Warren acknowledges his actions caused the SBA a total loss of $145,877.70. "The federal government created programs to provide economic relief to businesses struggling to stay afloat during the COVID-19 related shutdowns," said U.S. Attorney Kate E. Brubacher. "Unfortunately, Timothy Warren manipulated a well-intentioned program into a mechanism of personal financial gain and must now be held accountable." Warren is scheduled to be sentenced on October 3, 2023. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The Internal Revenue Service Criminal Investigation, U.S. Department of Defense- Defense Criminal Investigative Service and Defense Contract Audit Agency, and the U.S. Department of Health and Human Services – Office of Inspector General are investigating the case. Assistant U.S. Attorney Aaron Smith is prosecuting the case.
