Kelly Woods, 43, of Elizabethtown, pleaded guilty in federal court Monday to three counts of wire fraud related to a CARES Act financial assistance program.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge Kathy Enstrom of the Federal Deposit Insurance Corporation Office of Inspector General, and Special Agent in Charge Jodi Cohen of the FBI Louisville Field Division made the announcement.
During the plea hearing, Woods admitted that between May 1, 2020, and March 31, 2021, she filed three fraudulent applications for Paycheck Protection Program loans, resulting in the theft of $1,318,955. Woods utilized the entities Philips Healthcare LLC and LB Acquisitions LLC. Woods organized LB Acquisitions LLC after the onset of the COVID 19 pandemic. She then exaggerated the number of employees and payroll expenses of those entities in the fraudulent applications.
The Small Business Administration Payroll Protection Program loans were designed to provide a direct incentive for small businesses that were in operation on February 15, 2020, to keep their workers on the payroll. Payroll Protection Program loan proceeds were required to be used by the business on certain permissible expenses. Interest and principal on the Payroll Protection Program loans could be entirely forgiven if the business spent the loan proceeds on the allowable expenses within a designated period and used a certain percentage of the Payroll Protection Program loan proceeds on payroll expenses.
Woods is scheduled to be sentenced on June 22, 2023. Pursuant to the terms of the plea agreement, Woods will also forfeit certain real property and a vehicle. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FDIC Office of Inspector General and FBI are investigating the case.
Assistant U.S. Attorneys Nicole Elver and David Weser are prosecuting the case.
Source: WBKO
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