Former Olympic speedskater Allison Baver will stand trial Monday in Salt Lake City on federal charges accusing her of receiving $10 million in Paycheck Protection Program funds to bankroll an entertainment company that had no employees or payroll at the time she applied for the COVID-19 relief money.
Federal prosecutors say Baver, proprietor of Allison Baver Entertainment, then used thousands of those Paycheck Protection Program funds to pay off HOA dues to prevent the planned foreclosure of her home, as well as pay for travel expenses, food and “other non-payroll costs.”
The Paycheck Protection Program was designed to offer small businesses forgivable loans during the COVID-19 pandemic to help retain jobs and offset other expenses. Though prosecutors state in court filings that Baver’s entertainment company was not a fictional entity, they argue none of the company’s planned entertainment projects were “in production or even pre-production” when she applied for the loans in early 2020, and to date, none has been produced.
Baver faces two federal counts of making a false statement designed to influence a bank. She also is charged with one count of money laundering, and faces a separate count of contempt after prosecutors say she did not produce records in response to a grand jury subpoena.
Earlier this week, the government moved to dismiss six other counts Baver initially faced related to PPP loan applications. Baver previously pleaded not guilty to all charges filed against her.
Nearly 51,000 Utah businesses and nonprofits got loans through the Paycheck Protection Program, totaling more than $5 billion overall. Baver’s company was one of just 41 among the 6,737 loans that was $5 million or more.
Allegations against Baver
Allison Baver Entertainment began operations as a single-member, registered LLC in Utah in October 2019, a court filing states. By early 2020, Baver was trying to develop several entertainment projects, including a reality show titled “America’s Angels,” a short film titled “Monsters,” and a film titled “Dead Princess,” prosecutors say.
But through at least March 2020, the company had no payroll history, and its principal place of business was listed as Baver’s home address.
In March 2020, Baver began seeking loans from the Small Business Administration for the entertainment company and two other businesses registered to her, but her applications for Economic Injury Disaster Loans were denied, the document states.
At about the same time, Baver was notified that her HOA intended to foreclose on her home after she had failed to pay outstanding dues, the document states.
In April 2020, Baver filled out, certified and electronically signed “numerous” Paycheck Protection Program loan requests through Lendio, a Lehi-based loan agency, with each application requesting $10 million.
The average monthly payroll Baver listed on each Lendio application varied from $4 million to more than $4.7 million, the court filing states. First, she listed the number of employees as 100, then 105, and eventually 430. Lendio submitted her applications to a bank for review.
At about the same time, Baver personally submitted PPP loan applications to both Utah First Credit Union and Meridian Bank. The Utah First application also sought $10 million, claimed $4 million in average monthly payroll and claimed 430 employees.
But in an email to Utah First, Baver stated she had “no past payroll history,” the court filing states. Over the course of follow-up emails, the bank informed Baver that she was not eligible for a PPP loan because she had no payroll history from either 2019 or early 2020.
By that month, Baver had preliminarily discussed how much her entertainment company would have to pay cable network A&E to put “America’s Angels” on the air, once Allison Baver Entertainment was able to develop, produce and create the episodes — none of which had been done, prosecutors say. Baver had also entered into an agreement to purchase the rights to the “Monsters” script, but no money had been paid.
“The PPP loan program does not allow you to fund future expenses,” Utah First wrote on April 23, 2020, the court filing states.
The next day, and “with this knowledge,” prosecutors say Baver began submitting PPP loans to Meridian Bank. She again claimed 430 employees and about $4.7 million in monthly payroll, but did not “expressly state” that her entertainment company had “no past payroll history” and instead included “more ambiguous language,” the court filing states.
Meridian approved her loan about three days later.
Paying off HOA dues, and other allegations
Once Baver received the loan, prosecutors say she contacted A&E to tell the network that she had received “financing” for the “America’s Angels” project. She also contacted a person involved in the “Monsters” film and said she had “received a PPP loan to fund the film,” the court filing states.
Prosecutors say Baver also transferred more than $70,000 of the $10 million loan she received to two businesses she controlled, including High Rise Realty. That company then used the proceeds to pay off Baver’s outstanding HOA fees, the court filing states.
Through the entertainment company, PPP proceeds were used to pay for travel expenses, food and other “non-payroll costs,” the filing states. The company also used $150,000 of PPP money to help finance a film called “No Man of God,” which prosecutors argue amounted to money laundering.
Though tax filings indicate the entertainment company has paid about $177,000 in wages to a total of nine employees, no employees had been hired or paid by Allison Baver Entertainment before the company received its PPP loan, prosecutors say.
“The only record of any payment by ABE to any independent contractor prior to obtaining the PPP loan is a payment of $5,000 to an attorney,” the court filing states.
A website for Allison Baver Entertainment states that the company is “the engine behind stories that move the needle. We are purpose-driven across film, television, and lifestyle endeavors.”
In July 2020, The Salt Lake Tribune reported that little was known about Allison Baver Entertainment. A company with 430 employees in Utah would rank as one of the state’s bigger employers in the state, but at the time, The Tribune reported, the Utah Office of Economic Development and the Utah Film Commission were not aware of the company.
In an email to The Tribune that year, Baver wrote that her company had “several projects in development” with each requiring a “substantial number of employees,” though she did not specify what those projects were.
After The Tribune published its report, Baver filed a notice that she intended to sue the news organization. As of Sunday, she had not served The Tribune with a lawsuit.
Baver will appear in federal court early Monday. The trial is expected to last five days.
Editor’s note • June 26, 2:15 p.m.: This story has been updated to note that as of Sunday, Allison Baver had not served The Salt Lake Tribune with a lawsuit.
