A D.C. man was arrested and charged with stealing more than $2 million by inventing fake emotional support animal companies and using pandemic relief loans to buy a rowhouse and a yacht, the U.S. Attorney’s Office for the District of Columbia announced Tuesday.


Kyle Herrig, president of the D.C.-based watchdog group Accountable.US, said the case against Gaughan revealed shortcomings of the federal bailout programs.

“It shows you, one, that there was little vetting done on the front end when he applied for this loan,” Herrig said. “And two, these type of actors, people that have committed financial crimes in the past, saw the PPP program as an opportunity to commit financial crimes now.”

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