Restaurateur Michael Felts pleads guilty to fraud

Michael Felts, the embattled Springfield businessperson who has closed a handful of his restaurants in the wake of Paycheck Protection Program scheme allegations by the federal government, has pleaded guilty to fraud.

The office of Teresa Moore, U.S. attorney for the Western District of Missouri, announced in a news release this morning that Felts pleaded guilty on July 28 to his role in a nearly $14 million wire fraud scheme.

The terms of the plea agreement dictate Felts must pay restitution exceeding $9.9 million and a money judgment in an amount to be determined at sentencing, but not less than $7 million. In his guilty plea, Felts additionally agreed not to contest the federal government's forfeiture of personal property and real estate purchased with the proceeds of the wire fraud conspiracy, according to Moore's office.

The property being forfeited includes:

• Four parcels of real estate in Springfield.
• Six vehicles and a yacht.
• Two Rolex watches.
• Signed basketball and baseball cards.

At sentencing, Felts could face up to 40 years in federal prison without parole, according to the release. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.

In the guilty plea on Friday, Felts admitted to participating in a wire fraud conspiracy that fraudulently obtained or attempted to obtain nearly $14 million between January 2018 and Sept. 13, 2022 through commercial loans, PPP loans and Economic Injury Disaster loans and grants through the federal coronavirus relief packages.

According to the U.S. attorney’s release, Felts and a San Antonio resident unidentified by court officials utilized Felts' businesses, as well as fake companies, to fraudulently receive loans. The conspirators submitted fake and forged documents and did not use the loans for their intended purposes.

After PPP fraud allegations by the federal government surfaced last year, Felts' Taco Habitat, Hot Cluckers and Bourbon & Beale restaurants in Springfield closed, according to past reporting. Felts continues to own White River Brewing Co., according to its website, and the business remains in operation.

Felts' attorney, Abe McGull of The McGull Law Firm LLC, could not be reached for comment by deadline.

While the federal government had accused Felts of PPP fraud starting in September 2022, he previously had not been charged with any crimes, according to past reporting. Felts in September told Springfield Business Journal that he was a victim of identity theft.