Daniel R. Hitlan, formerly of Vermilion Township and more recently of Huron, Ohio, has been sentenced to 27 months in federal prison for defrauding the Paycheck Protection Program (PPP) out of more than $2.5 million during the COVID-19 pandemic.
According to the U.S. Attorney’s Office for the Northern District of Ohio, Hitlan submitted fraudulent loan applications for companies he controlled, overstating payroll expenses and providing false employee information. The applications were designed to exploit pandemic relief efforts meant to support struggling small businesses.
In total, Hitlan received approximately $2,578,318 in PPP funds. Authorities said the money was used on personal purchases, including vehicles and jewelry, rather than business expenses. As part of his sentence, he was ordered to pay $2,744,013.33 in restitution and forfeit the full amount he fraudulently obtained.
Hitlan pleaded guilty to one count of bank fraud and one count of money laundering. On May 20, 2025, U.S. District Judge Jeffrey J. Helmick handed down the sentence.
The case was investigated by the FBI and the IRS Criminal Investigation Division. Prosecutors noted that the fraud deprived legitimate businesses of critical support during a time of national emergency and undermined public confidence in the relief program.
Hitlan is expected to report to federal prison in the coming weeks.
