The owner of a company that operates multiple Little Caesars pizza franchises in western Kentucky has agreed to pay the federal government more than $1 million to settle allegations that he misused funds from a COVID-19-era federal loan program.

The U.S. Attorney’s Office for the Western District of Kentucky announced Monday that Ryan Turtle, of Memphis, Tennessee, will pay $1,731,200 to resolve allegations that he unjustly enriched himself by misappropriating COVID-19 Economic Injury Disaster Loan funds obtained during the pandemic from the federal Small Business Administration.

The Kentucky Secretary of State’s website lists Turtle as the registered agent for the Turtle Company, which was organized in 2015 in Bowling Green.

The Economic Injury Disaster Loan program was instituted during the pandemic as a way to provide working capital for small businesses impacted by COVID-19.

Loan recipients were able to apply for up to $2 million at a fixed interest rate of 3.75 percent, with the loans set at a term of 30 years.

The funds were intended to go toward regular payments of operating expenses, such as payroll, rent/mortgage and utilities, and to pay business-related debt.

According to the U.S. Attorney’s Office, Turtle submitted an amended loan authorization and agreement with the SBA on Oct. 27, 2021, in which he certified and promised that the loan proceeds would be used as working capital for his business.

The federal government, however, alleged that Turtle transferred the loan proceeds into various cryptocurrency accounts after receiving the money from the SBA, which the U.S. Attorney’s Office characterized as “unjustly enriching himself.”

“COVID-19 EIDL funds were intended to help small business owners during difficult economic times and taking advantage of this program will not be tolerated,” U.S. Attorney Michael Bennett of the Western District of Kentucky said in a news release. “Our office is committed to investigating and recovering taxpayer monies that have been diverted or misused.”