RICHMOND, Va. – A Henrico man pleaded guilty today to defrauding the Small Business Administration by obtaining over $1.1 million in Paycheck Protection Program (PPP) loans on behalf of two defunct companies he owned.
According to court documents, throughout 2020 and 2021, Kortney T. Kelley, 45, filed at least four fraudulent applications for PPP loans on behalf of his two non-operational companies. As part of these loan applications, Kelley made numerous false representations and certifications about the operation of these two companies, including that the companies—which had no employees— together employed more than 140 workers and paid-out over $220,000 in monthly payroll expenses. Furthermore, Kelley submitted forged tax returns and other forged documentation purporting to substantiate his false claims that his companies paid substantial payroll expenses.
Kelley spent the loan proceeds on purposes unrelated to those authorized by the Small Business Administration (SBA), including spending at least $142,711 in loan proceeds at various casinos and on gaming, and transferring at least $834,077 in loan proceeds to Kelley’s personal brokerage accounts. Kelley made further false statements to the SBA in a loan forgiveness application, which resulted in the complete discharge of the loans.
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