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The former chief financial officer of Wyoming Catholic College allegedly defrauded the Wyoming Business Council and a New York investment firm out of millions of dollars while he was at the college by applying for loans and grants while misrepresenting the size and success of his private business, WyoFile reported.
Federal prosecutors charged Paul McCown on March 10 with seven counts of criminal wire fraud. Each charge carries a maximum penalty of 20 years in prison and a $250,000 fine. He waived indictment and agreed to plead guilty to at least some of the allegations. His plea hearing is scheduled for March 29 with U.S. District Judge Scott W. Skavdahl.
McCown started applying for loans and grants in June 2020 from the Wyoming Business Council, the state agency distributing federal COVID-19 relief funds to Wyoming businesses affected by the pandemic, according to prosecutors. He received $841,863 from the council between June and November 2020. An audit by the council in February 2021 found that he neglected to provide proof of the revenue earned by his company, McCown Industries, and the number of people he employed.
He also allegedly used a fake identity and bank account to apply for a short-term $15 million loan from the New York investment firm Ria R Squared, giving most of the money as an anonymous gift to Wyoming Catholic College. He also gave funds to the college’s vice president, Jonathan Tonkowich, and to his brother Phillip McCown, according to court filings. Ria R Squared filed a civil lawsuit against McCown in June 2021, and he resigned from his position at the college days later. Most of the loan money was retrieved by the Federal Bureau of Investigation, but Ria R Squared claims all three recipients still hold some fraudulent funds and sued in December to recover the funds.
WyoFile also reported that McCown received a $1.1 million federal loan for his business and a $1.29 million in loans on behalf of Wyoming Catholic College under the COVID-19 Paycheck Protection Program, which were not included in the federal charges. He claimed the college had 187 employees. Other administrators said the college has 60 full-time and five part-time employees.
