SALT LAKE CITY, Utah – January 9, 2025 – Attorneys Jamie Thomas of Ray Quinney & Nebeker (RQN) and Alex Ramos of Langford Ramos are pleased to announce the dismissal of the federal indictment against their client, Robert Molling. Mr. Molling, the owner of 1% Fitness, a company that prepares and delivers healthy balanced meals, was indicted on March 20, 2024, on seven counts of wire fraud. The indictment stemmed from allegations that Mr. Molling fraudulently obtained over $1.8 million in COVID-19 Economic Injury Disaster Loan (EIDL) funds.
The government alleged that between March 2020 and April 2022, Mr. Molling fraudulently applied for EIDL funds for two of his companies. These funds were allocated by Congress for the Small Business Administration to provide low-interest loans to eligible small businesses experiencing financial disruption due to the COVID-19 pandemic. The prosecution contended that Mr. Molling misrepresented his criminal history on the loan applications. Specifically, they claimed he falsely stated he had no criminal convictions other than minor vehicle violations. The government further alleged that Mr. Molling initiated multiple wire transfers via interstate commerce to fraudulently obtain approximately $1,868,100 in EIDL loan funds and advances. The seven charges filed against Mr. Molling related to these wire transfers, which allegedly occurred between May 2020 and March 2022.
Mr. Molling maintained his innocence throughout the proceedings. He asserted that he used all loan proceeds for legitimate business purposes, consistently made monthly payments, and intended to repay the loan in full, with interest. While Ms. Thomas and Mr. Ramos were confident they would prevail at trial, the United States filed a Stipulated Motion to Dismiss the Indictment on December 11, 2024.
Mr. Molling is a respected entrepreneur who overcame substance abuse addiction and built a successful business. He is also a dedicated community member who volunteers at the prison, inspiring inmates to turn their lives around. Mr. Molling is grateful to have this matter behind him and looks forward to continuing to serve his community.