A 51-year-old Davenport chiropractor on Tuesday made his initial appearance in federal court in Davenport of false statements to a financial institution, bank fraud, and money laundering charges, according to allegations in a news release from the U. S. Attorney’s Office, Southern District of Iowa.
Jason Rannfeldt is charged in a 14-count indictment returned on March 7, the release says. According to court documents, Rannfeldt owned and operated Rannfeldt Clinic or Rannfeldt Family Chiropractic between October 1998 and April 2021, and claimed to own and operate four additional businesses: Perfect Fit Coaching, LLC; PF Nutrition Counseling, LLC; RC Orthotics, LLC; and RC Performance Therapy, LLC, the release says.
According to the release, between January 2021 and May 2021, Rannfeldt allegedly submitted 11 “false and misleading” Paycheck Protection Program (PPP) loan applications to various financial institutions on behalf of these businesses, court documents show. Rannfeldt allegedly included supporting documents – including tax documents- with the PPP loan applications that contained false or fraudulent misrepresentations, the release says.
According to the release, Rannfeldt is alleged to have obtained or attempted to obtain about $1.1 million in PPP loan funds through the submission of the false and misleading PPP loan applications and supporting documentation.
Additionally, on Aug. 9, 2021, Rannfeldt allegedly submitted a false and misleading residential mortgage loan application to GreenState Credit Union and provided supporting documents containing false or fraudulent misrepresentations. GreenState Credit Union approved the mortgage loan in the amount of $588,750, according to the release.
The release says Rannfeldt is charged with seven counts of false statements to a financial institution, six counts of bank fraud, and one count of money laundering. If convicted, he faces maximum sentences of 30 years in prison for each of the false statements to financial institutions and bank fraud counts, and 10 years in prison for money laundering, according to the release.
On Tuesday, when Local 4 News called the number listed for Rannfeldt Family Chiropractic in Davenport, a representative of Byrant Chiropractic answered and said the Rannfeldt business had been purchased about two years ago and is Bryant Chiropractic now.
A federal district court judge will determine any sentence after considering the U. S. Sentencing Guidelines and other statutory factors, according to the release.
U. S. Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Internal Revenue Service–Criminal Investigation, Federal Bureau of Investigation, and Small Business Association–Office of Inspector General are investigating the case, according to the release.
What is the Paycheck Protection Program?
The Paycheck Protection Program is a $953-billion business loan program established by the federal government during the Donald Trump administration in 2020 through the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) to help certain businesses, self-employed workers, sole proprietors, certain nonprofits and tribal businesses continue to pay their workers.
The program allowed entities to apply for low-interest private loans to pay for their payroll and other costs. Loan proceeds also could be used to cover rent, interest and utilities.