KY Woman Gets 44 Months in COVID Loan Scam

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LONDON, KY – Nicole Pennington, 50, will spend the next three years and eight months behind bars after a federal judge slapped her with a 44-month sentence Tuesday. The charge? Ripping off the government through a brazen scheme to pocket over a million dollars in COVID-19 relief funds.

Pennington, along with her husband Joshua, gamed the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) programs – designed to keep businesses afloat during the pandemic – by submitting bogus applications starting in March 2020. She fabricated information for roughly 30 loan requests, using both real and made-up companies. Six of those applications were approved, netting the couple a cool $1,090,398.35 in SBA loans.

But the Penningtons didn’t use the money to save any businesses. Instead, they laundered over $1 million in stolen funds, turning it into personal perks. Court records show the couple spent the cash on a complete kitchen remodel, cosmetic surgery, a lavish Viking River Cruise, new vehicles, and paid off existing debts. They also pulled out large amounts of cash, effectively turning the government bailout into a personal slush fund.

Joshua Pennington already received a 22-month sentence for his part in laundering the money. Nicole Pennington will serve 85% of her 44-month sentence under federal law.