The CEO of a California construction company was arrested on a federal criminal complaint alleging that he fraudulently obtained more than $4 million in Covid-19 relief funds and federally guaranteed small business loans.
According to court documents, Joey Wayne Mackey of Visalia, California, submitted fraudulent Paycheck Protection Program (PPP) loan applications between April and June 2020 for three of his companies: Forcum-Mackey Construction Inc., a general contractor based in Ivanhoe; JWM Inc., a purported construction consulting company for which Mackey is the sole proprietor based in Mackey’s Visalia home; and Mack Aviation LLC, a provider of refueling and hangar‑rental services for charter jets at Visalia Municipal Airport.
All three of these applications contained fraudulent numbers of employees and monthly payroll cost calculations. Mackey received more than $4 million from these loan applications, and in the subsequent months he laundered the PPP loan funds through fraudulent payroll payments to family members (including his minor children) while controlling the bank accounts of those family members.
In October 2020, Mackey withdrew the funds from the family member accounts to buy revenue-generating real estate acquisitions, such as office parks and luxury apartment complexes from which he enriched himself further through rent payments from tenants. Mackey continued making real estate investments and luxury goods purchases traceable to PPP funds through at least 2023.
If convicted, Mackey faces a maximum statutory penalty of 30 years in prison and a $1 million fine.
This case is the result of a collaborative investigation by the Federal Bureau of Investigation, the Federal Deposit Insurance Corporation Office of Inspector General, and the Small Business Administration Office of Inspector General.
California….the public and private fraud and criminal capital of this country. I say “hangem high” and hopefully let others thinking of committing these types of fraud to think twice and instead “do the right thing”!
I don’t understand why he’s subject to a 1 million dollar fine. Why no make him repay every penny with interest?