RICHMOND, Va. (WRIC) — A Henrico man has pleaded responsible to defrauding the Small Enterprise Administration by acquiring over $1.1 million in Paycheck Safety Program (PPP) loans for 2 defunct firms.
In response to court docket paperwork, Kortney T. Kelley, 45, filed at the least 4 fraudulent purposes for PPP loans on behalf of his two non-operational firms all through 2020 and 2021. As a part of these mortgage purposes, Kelley claimed that the 2 firms employed greater than 140 employees and paid out over $220,000 in month-to-month payroll bills. In actuality, the defunct firms had no workers. Kelley additionally submitted cast tax returns and documentation to again up his false claims.
Kelley spent at the least $142,711 in mortgage proceeds at casinos and transferred at the least $834,077 from the loans into his private brokerage accounts.
Kelley additionally defrauded different COVID-19-related help applications. He submitted a separate fraudulent utility below the Financial Damage Catastrophe Mortgage (EIDL) program on behalf of one in every of his defunct firms and acquired $10,000 into the enterprise’s checking account. Kelley additionally submitted fraudulent claims to the Virginia Employment Fee for unemployment advantages, stating that he was laid off from his job as a gross sales supervisor at an organization he completely owned.
Kelley is scheduled to be sentenced on Could 31, 2023. He faces a most penalty of 20 years in jail.