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Vancouver man has been sentenced to 21 months in prison for defrauding the COVID-19 relief program and money laundering. Michael James DeFrees, 63, submitted false applications for Economic Injury Disaster Loans and Paycheck Protection Program Loans between 2020 and 2022, according to court documents. He claimed he had no disqualifying convictions or probation when in fact he was on probation following a 2017 felony conviction.

    DeFrees laundered some of the loan proceeds through an unlisted business entity and used the funds for personal expenses. The U.S. Attorney's Office seized his assets, including a boat, trucks, snow bikes, and real properties. These were sold to recover $2.5 million in restitution and forfeiture, which will be returned to the Small Business Administration and the Assets Forfeiture Fund.

    The Asset Recovery Unit of the U.S. Attorney's Office collected the full amount from DeFrees' seized assets and one real property. The unit's Chief, Katie de Villiers, credited her team for their diligent work in recovering the funds for victims - in this case, taxpayers.