Wings restaurant was fraudulently funded with COVID loan money in Missouri, feds say

A man and woman lied to get $448,536 in Paycheck Protection Program loans during the COVID-19 pandemic, then used the money to construct a Missouri wings restaurant and renovate a condo, according to court records.

Now the pair has been indicted in federal court.

Pamela S. Hubbard, of St. Louis, and Irvin Coats, of Florissant, were each indicted on one count of conspiracy to commit wire fraud, according to a Feb. 21 news release from the U.S. Attorney’s Office for the Eastern District of Missouri. They both pleaded not guilty.

The defense attorney representing Hubbard, 45, declined to comment. The attorney representing Coats, 43, did not immediately respond to a request for comment from McClatchy News on Feb. 22.

Federal authorities said Hubbard and Coats teamed up during the early stages of the pandemic to fraudulently obtain PPP loans. The loans were backed by the U.S. Small Business Administration to help small businesses keep their employees during the pandemic.

Their plan was to use the funds to open The Wing Strip — a restaurant based in Florissant, prosecutors said.

To get the money, Coats first submitted a PPP loan application in May 2020, seeking $53,125 for Abounding Protection LLC, a company he established in 2007, authorities said.

“Coats falsely claimed that the company had 12 employees and an average monthly payroll of $21,250 when there were no employees, wages, company operations or revenue,” according to the release. He said he would use the money for payroll, leasing and utilities.

Then in June 2020, Hubbard applied for a $371,245 PPP loan for Star Shyne LLC, a cleaning company she set up the year before, according to the indictment. Prosecutors said she overstated how many employees she had.

Most recently, in March 2021, Coats sought and received $24,166 in PPP loan money for Abounding Protection, officials said.

With a combined $448,536, prosecutors said the pair used the money to pay contractors working on The Wing Strip restaurant and to renovate a condo in Florissant.

The Wing Strip was first registered with the Missouri Secretary of State in November 2019, months before the first PPP loan application was submitted, according to court records. Hubbard and her son were listed as organizers.

Federal authorities are seeking forfeiture of all assets connected to the fraud, according to the release. The pair also faces up to 20 years in prison and a $250,000 fine.

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