Columbia, SC (Tega Cay Sun) – A Fort Mill business owner has admitted his guilt in the misuse of government funds designated for COVID relief for businesses. James Paul Seidel, a 56-year-old businessman operating a seafood distributorship in Fort Mill, York County, pleaded guilty to a felony charge of providing false information about the intended use of approximately $200,000 in federal loan money.
The funds were meant to be utilized for debt relief and paying off expenses during the challenging times of the COVID pandemic. Instead, Seidel diverted the money for personal gain. He used $113,000 of the loan to purchase cryptocurrency and spent around $80,000 of the loan money to purchase a house.
The loan program, overseen by the Small Business Administration, was designed to provide emergency relief to businesses struggling due to the pandemic. During the peak of the crisis in 2021, companies like Seidel’s could access up to $2 million with minimal documentation and rapid approval times.
Seidel will face sentencing at a later date, with U.S. Judge Mary Geiger Lewis presiding over the case at the Columbia federal courthouse. The indictment reveals that Seidel engaged in cryptocurrency transactions through platforms such as crypto.com and Blockfi Trading between October 2021 and March 2022, all while using the loan funds under the name of his company, Grayson & Mae.
