The husband of former “Squad” Rep. Cori Bush, D-M.O., was hit with federal charges this week alleging that he committed wire fraud related to the COVID-era Paycheck Protection (PPP) and Economic Injury Disaster Loan (EIDL) programs — the massive federal spending programs.
Bush’s husband, Cortney Merritts, 46, faces two counts of wire fraud for allegedly filing bogus applications in 2020 and 2021 with the United States Small Business Administration, according to multiple reports.
District of Columbia | Indictment Charges St. Louis Man with COVID Fraud | United States Department of Justice https://t.co/cOKuNZDE4p
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The indictment alleges that Merritts obtained nearly $21,000 from the programs for his own benefit and enjoyment by lying on the applications about a company that he owned, including how many employees he had and the amount of revenue the company generated.
The indictment stated that on July 7, 2020, Merritts received an $8,500 EIDL loan from the SBA for a moving business he operated that he called Vetted Couriers.
In the application he submitted for Vetted Couriers, Merritts certified that his business had six employees and had generated $32,000 in gross revenue between January 30, 2019 and January 30, 2020.
The next day, on July 8, 2020, Merritts submitted another application to the SBA for an EIDL loan in the name of a sole proprietorship he called “Courtney Merritts.”
In this EIDL application, Merritts fraudulently claimed to have a business that employed ten people and generated $53,000 in gross revenue between January 30, 2019 and January 30, 2020. In addition to an EIDL loan, Merritts also requested an EIDL advance of up to $10,000 based on his false claim that he had 10 employees.
The SBA rejected Merritts’ attempt to obtain additional EIDL funds after determining that his July 2020 application was nearly identical to the prior one he submitted.
The indictment also alleges that on April 22, 2021, Merritts applied for a PPP loan in the name of a sole proprietorship he called “Cortney Merritts.”
Merritts fraudulently claimed in this application that he had created this business in 2020 and that it had generated $128,000 in gross income that year. Based on Merritts’ representations about his gross income, Merritts received a $20,832 PPP loan. Merritts used the proceeds for his personal benefit and enjoyment.
In July 2022, Merritts submitted a loan forgiveness application in which he falsely claimed that this business had 10 employees at the time of the PPP loan, and that he spent the $20,832 on payroll costs. Based on Merritts’ alleged fraudulent representations, the SBA forgave the PPP loan in the amount of $20,832 and the $254.03 in interest.
The Washington Post reported that while the indictment was signed by United States Attorney Ed Martin, President Donald Trump’s nominee to serve as permanent top prosecutor in D.C., the investigation was launched during former President Joe Biden’s administration.
Merritts’ attorney Justin Gelfand responded to the allegations: “We look forward to litigating this case in the courtroom.”
Bush was under federal criminal investigation last year over allegations that she misspent funds meant for personal security when she paid Merritts tens of thousands of campaign dollars to be her security guard.
The current status of the investigation is not known and no charges have been filed and she has not been formally accused of any criminal wrongdoing.
Bush represented her St. Louis-area district since 2021 after she toppled Rep. Lacy Clay (D-MO) in the 2020 primary, and over the years, she has faced scrutiny over payments for private security despite her calls to defund the police.
Her campaign has spent more than $750,000 on security services since 2019, according to federal election data.
The congresswoman has previously said she was paying out money for protection because of attempts on her life.
She lost her seat in 2024 when she lost her primary to then-St. Louis County Prosecutor Wesley Bell, a more moderate Democrat.