Pennsylvania trucking company owner faces wire-fraud and money laundering charges after federal prosecutors claim he used $ 467,000 of funds obtained through US Small Business Administration. Paycheque Protection Program (PPP) to buy residential property, two vehicles and stock market investments.
Federal prosecutors say Keith McConnell, 43, of Carlisle, Pa., Submitted fraudulent PPP loan applications and forged documents on behalf of his now defunct Carlisle-based trucking company KB Transportation LLC, the Department of Justice said. Justice in a press release. declaration Friday.
Atlanta-based Kabbage Inc. approved McConnell’s first PPP loan application for $ 312,000 in June 2020. McConnell claimed his trucking company had 26 employees and had monthly salary expenses of nearly $ 125,000. However, prosecutors say McConnell’s trucking business did not operate in 2019 or 2020 and had no employees or payroll charges.
After receiving his PPP loan, prosecutors allege he embarked on a personal spending spree, buying a house, two vehicles and investing in the stock market.
âCovid rescue fraud is a high priority for our office and the Department of Justice,â Acting US Attorney Bruce D. Brandler said. “These funds were intended to help small businesses survive the pandemic, not fraudsters to support an affluent lifestyle.”
Seven months after receiving his first round of PPP funds, McConnell applied for a second PPP loan of $ 155,200 in January 2021. However, those funds were never disbursed, according to the DOJ.
McConnell faces up to 30 years in prison.
Forgivable loans through PPP, administered by the Small Business Administration, started with $ 350 billion in the CARES law signed by former President Donald Trump at the end of March 2020 and was relaunched in April 2020 with an additional $ 320 billion . The third round of financing, $ 284 billion in PPP loans repayable through the SBA, was opened to lenders in January.
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