GRIMY NEWS: A Baltimore County man has admitted to defrauding financial institutions out of over half a million dollars in COVID-19 relief loans.
Edward McCorkle, 37, of Baltimore County, Maryland, pleaded guilty today to one count of wire fraud for his role in submitting fraudulent applications under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The scheme involved obtaining $523,700 from financial institutions, including Cross River Bank and the Small Business Administration (SBA), through falsified PPP loan applications.
The CARES Act was enacted to provide emergency financial assistance during the COVID-19 pandemic, with the Paycheck Protection Program (PPP) being a key component. McCorkle is accused of using the scheme to defraud these institutions from May 2020 to February 2021. He aimed to obtain a total of $946,500 but was successful in stealing over half that amount.
Among the many deceptions in McCorkle’s fraudulent applications was the claim that Real Transitions LLC employed 15 workers with an average monthly payroll of $98,600. To support this lie, he submitted four fabricated IRS Form 941 Employer’s Quarterly Federal Tax Returns, which falsely indicated that more than $100,000 in federal income taxes were withheld from employees in 2019. However, the IRS Forms 941 were entirely fictitious as Real Transitions did not employ any workers or withhold any taxes during the 2019 tax year.
After receiving the fraudulent PPP loan funds, McCorkle paid his co-conspirator a kickback of $49,300 for their part in the scheme. He also used the money to finance personal expenses, large cash withdrawals, and the purchase and renovation of real estate in Baltimore City. In June 2020, McCorkle made several withdrawals from the account, including one bank check for himself totaling $49,100.
The investigation was led by the FBI’s Baltimore Field Office and the Baltimore County Police Department. McCorkle now faces significant penalties for his criminal actions, which have depleted federal resources intended to help legitimate small businesses survive the economic downturn caused by the pandemic.
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Key Facts
- State: Maryland
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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