Henrico man charged in connection to $1.1 million COVID-19 fraud scheme

File- stacks of $100 bills.
File- stacks of $100 bills.(KWQC)
Published: Apr. 22, 2022 at 1:02 PM EDT
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HENRICO, Va. (WWBT) - A Henrico man was taken into custody and charged with fraudulently obtaining over $1.1 million in Paycheck Protection Program loans (PPP) loans on behalf of two defunct companies he owned and using those PPP loan funds for his own personal benefit.

In a press release, the U.S. Attorney’s Office said from April 8, 2020, to August 31, 2021, Kortney Kelley, 44, submitted at least four fraudulent applicants for loans under the PPP, a Small Business Program designed to help businesses impacted by the COVID-19 pandemic to continue paying their employees.

Kelley made many false statements in the applications he submitted saying the defunct companies had over 140 workers and paid out over $220,000 in monthly payroll expenses. He also submitted forged tax returns and other documents to back up the substantial payroll expenses. In reality, these businesses generated no income and had no employees.

According to Kelley’s indictment, his falsified loan applications caused the Small Business Administration (SBA) to disperse over $1.1 million to his business accounts. Kelley spent at least $142,711 of the funds at various casinos and gaming. At least $834,077 went to Kelley’s personal brokerage accounts.

Kelley’s charges include wire fraud and engaging in monetary transaction money laundering. He faces a maximum penalty of 20 years in prison if convicted. But, actual sentences for federal crimes are typically less than the maximum penalties.

For the full press release, click here.

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