Harold Bennie Kaeding, a 72-year-old man from Eden Prairie, Minnesota, is behind bars after being charged in a brazen $2.1 million fraud scheme targeting federal pandemic relief programs. Authorities say Kaeding exploited the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) Program during the height of national crisis, filing false applications under fake business fronts and fleeing to Colombia to escape justice.
Court documents reveal Kaeding applied for at least $2,182,625 in relief loans between April and December 2020. He used the names of close family members to submit applications in the names of four shell companies: Harbor Holdings Corporation, Harbor Corp, AutoPay Inc., and Voyager Shipping Company. None of these entities filed tax returns or paid wages to any employees in 2019 or 2020—rendering the applications outright fabrications from the start.
Kaeding didn’t just lie—he built an entire paper empire. He submitted forged documents, falsely claimed dozens of employees, inflated payroll costs, and lied about how he’d use the funds. His goal wasn’t to save jobs or keep businesses afloat. It was cold, calculated theft. As a result of these lies, he pocketed approximately $658,490 in fraudulently obtained relief funds.
Those funds didn’t go back into businesses. They vanished into accounts Kaeding controlled. Investigators say he used the money for personal expenses—home mortgage payments, wire transfers to family and friends—while real small business owners struggled to survive. Then, as scrutiny mounted, Kaeding vanished, fleeing to Colombia in what prosecutors call a deliberate attempt to dodge federal prosecution.
He didn’t stay gone long. Extradited from Colombia on November 12, 2021, Kaeding was arrested two days later in Miami, Florida. He appeared before Magistrate Judge Alicia Otazo-Reyes in the U.S. District Court for the Southern District of Florida, where the charges of one count of wire fraud and one count of money laundering were formally read. The case was built through a joint investigation by the FBI and IRS Criminal Investigation.
Acting U.S. Attorney Charles J. Kovats confirmed the charges, with Assistant U.S. Attorney Jordan L. Sing leading the prosecution. An indictment has been filed, but under U.S. law, Kaeding is presumed innocent until proven guilty beyond a reasonable doubt. Still, the evidence paints the picture of a man who weaponized a national emergency for personal gain—and paid the price when the feds caught up with him.
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Key Facts
- State: Minnesota
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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