Tom Flanagan, a Beaumont shipping executive, has been indicted on four counts of wire fraud for allegedly seeking forgiveness of more than $2.4 million in PPP loans by misstating how the funds were used. The indictment, dated Aug. 5, 2026, says the alleged scheme ran from April 3, 2020, to May 23, 2023, and lists four specific forgiveness filings. Prosecutors allege funds were diverted to IRS tax debts, other business loans and cash withdrawals; a forfeiture notice seeks $1,514,917. Flanagan's attorney says they will review the evidence and that he is entitled to the presumption of innocence.
Beaumont Shipping Executive Indicted in $2.4M PPP Loan Forgiveness Fraud
12News
A federal grand jury in the Eastern District of Texas has returned a four-count indictment charging Tom Flanagan, a Beaumont-based shipping and stevedoring executive, with wire fraud for allegedly misrepresenting the use of more than $2.4 million in Paycheck Protection Program (PPP) loan proceeds to obtain forgiveness.
Indictment Details
The indictment, stamped Aug. 5, 2026, names Flanagan as part owner and president of P.C. Pfeiffer Co. Inc. (which also operates as James J. Flanagan Stevedores) and as part owner and president of James J. Flanagan Shipping Corporation. Both corporations are based in Beaumont, Texas. Prosecutors charge Flanagan under 18 U.S.C. § 1343 for an alleged scheme to defraud the Small Business Administration (SBA) and a participating lender between on or about April 3, 2020, and May 23, 2023.
Allegations
According to the filing, Flanagan applied for PPP loans on behalf of both companies and certified the loans would be used only for eligible business expenses such as payroll, mortgage interest, lease payments and utilities. He later sought forgiveness by submitting PPP Loan Forgiveness Application Form 3508EZ electronically to BBVA (a PPP lender later acquired by PNC), to PCA, and through the SBA forgiveness portal.
Prosecutors allege those forgiveness applications falsely certified that at least 60% of the forgiveness amount went toward payroll and that the funds were spent on other eligible costs. They contend that significant portions of the loan proceeds were actually used to pay IRS tax debts, to repay other business loans and for cash withdrawals, and that the payroll threshold was not met.
Overt Acts Cited
- Aug. 13, 2021 — Forgiveness application for James J. Flanagan Shipping Corporation (Loan #70733970-09), seeking approximately $954,835.
- April 21, 2022 — Forgiveness application for P.C. Pfeiffer Co. (Loan #87058370-03), seeking approximately $890,261.
- Oct. 4, 2022 — Forgiveness application for James J. Flanagan Shipping Corporation (Loan #30304986-01), seeking approximately $624,656.
- May 23, 2023 — Forgiveness application for P.C. Pfeiffer Co. (Loan #93479285-07), seeking approximately $478,617.
Forfeiture
The indictment includes a notice of intent to seek criminal forfeiture, naming a money judgment of $1,514,917 and any other property traceable to the alleged offenses.
"We have just received a copy of the indictment today. It alleges four counts of wire fraud. Once we review the evidence the government will be required to provide us in the case, we will be able to respond to questions. People should extend Mr. Flanagan the same presumption of innocence they would want provided to them," said Ryan Gertz, Flanagan's attorney.
Flanagan has not been convicted; the charges are allegations and the matter remains before the courts.
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