RICHMOND, Va. – A Henrico man pleaded responsible right this moment to defrauding the Small Enterprise Administration by acquiring over $1.1 million in Paycheck Safety Program (PPP) loans on behalf of two defunct firms he owned.
In response to court docket paperwork, all through 2020 and 2021, Kortney T. Kelley, 45, filed not less than 4 fraudulent functions for PPP loans on behalf of his two non-operational firms. As a part of these mortgage functions, Kelley made quite a few false representations and certifications in regards to the operation of those two firms, together with that the businesses—which had no staff— collectively employed greater than 140 employees and paid-out over $220,000 in month-to-month payroll bills. Moreover, Kelley submitted solid tax returns and different solid documentation purporting to substantiate his false claims that his firms paid substantial payroll bills.
Kelley spent the mortgage proceeds on functions unrelated to these licensed by the Small Enterprise Administration (SBA), together with spending not less than $142,711 in mortgage proceeds at numerous casinos and on gaming, and transferring not less than $834,077 in mortgage proceeds to Kelley’s private brokerage accounts. Kelley made additional false statements to the SBA in a mortgage forgiveness utility, which resulted within the full discharge of the loans.
Kelley additionally defrauded different COVID-19 associated help applications. Kelley submitted a separate fraudulent utility underneath the Financial Damage Catastrophe Mortgage (EIDL) program to the SBA on behalf of considered one of his defunct firms, containing a false certification that mortgage proceeds could be used completely on enterprise bills. In consequence, the SBA disbursed $10,000 to Kelley’s enterprise checking account. Furthermore, Kelley submitted fraudulent claims to the Virginia Employment Fee for unemployment advantages. The appliance for unemployment advantages falsely said that Kelley was laid off from his job as a gross sales supervisor of an organization that Kelley completely owned.
Kelley is scheduled to be sentenced on Might 31. He faces a most penalty of 20 years in jail. Precise sentences for federal crimes are sometimes lower than the utmost penalties. A federal district court docket decide will decide any sentence after bearing in mind the U.S. Sentencing Pointers and different statutory elements.
Jessica D. Aber, U.S. Lawyer for the Japanese District of Virginia, and Stanley M. Meador, Particular Agent in Cost of the FBI Richmond Discipline Workplace, made the announcement after U.S. District Decide David J. Novak accepted the plea.
Assistant U.S. Lawyer Avi Panth is prosecuting the case.
A replica of this press launch is situated on the web site of the U.S. Attorney’s Office for the Japanese District of Virginia. Associated court docket paperwork and data are situated on the web site of the District Court for the Japanese District of Virginia or on PACER by trying to find Case No. 3:22-cr-35.
