COVID-19 Relief Fraud Scheme Unraveled in Washington State: Two Individuals Sentenced for Stealing Nearly $300,000 in COVID-19 Relief Money
Yakima, Washington – In a shocking turn of events, two individuals have been sentenced for their roles in a COVID-19 relief fraud scheme that stole nearly $300,000 in government aid. David Kurt Schneider, of Kennewick, Washington, and Kelly Jo Driver, of South Carolina, pleaded guilty to COVID-19 relief fraud and were sentenced by Chief United States District Judge Stanley A. Bastian.
Schneider was sentenced to 12 months in prison, while Driver received 5 years of probation. In addition to their sentences, the court ordered restitution of $121,762. The scheme involved the submission of fraudulent funding applications in the name of various businesses, including Larsen Firearms and Solar Mobility LLC, which were owned by co-defendant Leif Gerald Larsen. Driver created fake payroll and tax forms to support the applications, and she received 10% of the funds disbursed by the Small Business Administration (SBA) and participating lenders.
The scheme was uncovered as part of the Eastern District of Washington COVID-19 Fraud Strike Force investigation. The SBA, FBI, and U.S. Attorney’s Office worked together to bring the perpetrators to justice. The case was prosecuted by Assistant United States Attorneys Jeremy J. Kelley and Frieda K. Zimmerman.
“Pandemic relief programs were created to support workers, small businesses, and communities struggling through an unprecedented crisis – not to enrich fraudsters,” said Acting U.S. Attorney Rich Barker. “By stealing nearly $300,000 intended for legitimate businesses, these defendants diverted critical resources at a time when many businesses were fighting to survive.”
“Those who exploited SBA’s pandemic relief programs for personal gain will be held accountable,” said SBA OIG’s Western Region Assistant Special Agent in Charge, Tim Larson. “SBA OIG continues to prioritize fraud investigations involving pandemic-era programs, working closely with the U.S. Attorney’s Office and our law enforcement partners to protect taxpayer funds and uphold the integrity of federal relief efforts.”
The COVID-19 relief programs, including the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program, provided billions of dollars in aid to small businesses affected by the pandemic. However, the scheme perpetrated by Schneider, Driver, and Larsen highlights the risks of fraud and abuse in these programs.
The case is a reminder of the importance of holding individuals accountable for their actions, particularly in cases where they exploit government aid for personal gain. The SBA, FBI, and U.S. Attorney’s Office will continue to work together to protect taxpayer funds and ensure that pandemic relief programs are used for their intended purpose.
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Key Facts
- State: Washington
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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