A trio of scammers has been indicted for allegedly swindling at least $250,000 in COVID-19 relief funds through the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) programs.
According to the indictment, Kelly Jo Driver, of South Carolina, David Kurt Schneider, of Kennewick, Washington, and Leif Gerald Larsen, of Pasco, Washington, conspired to commit wire fraud and bank fraud, wire fraud, bank fraud, and false, fictitious, or fraudulent claims. Additionally, David Kurt Schneider is charged with money laundering.
The indictment alleges that the trio fraudulently obtained at least $250,000 in CARES Act funding through the PPP and EIDL programs, and submitted fraudulent applications seeking at least an additional $1,000,000 in CARES Act funding that were ultimately not approved.
On March 27, 2020, the President signed into law the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, which provided a number of programs through which eligible small businesses could request and obtain relief funding intended to mitigate the economic impacts of the pandemic for small and local businesses.
The Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) programs have provided billions of dollars in aid, the vast majority of which have not been paid back, including hundreds of millions of dollars disbursed within Eastern Washington.
“Many struggling, deserving small businesses requested money from COVID-19 relief programs. Because of the overwhelming need, the programs quickly ran out of money and some businesses were not able to obtain the critical funding they needed,” said U.S. Attorney Vanessa R. Waldref. “We created the Eastern Washington COVID-19 Fraud Strike Force to combat pandemic-related fraud and protect local and small business that provide critical services for our community and support our economy.”
The indictment alleges that defendants submitted false information to the SBA and participating PPP lenders regarding gross revenues, number of employees, and amount spent on payroll in an attempt to obtain CARES Act funds to which they were not otherwise entitled.
The trio submitted funding applications in the name of Larsen Firearms, owned by Leif Gerald Larsen, and Solar Mobility LLC, RealNZ Water LLC, and Tempest Tactical Solutions, LLC, all owned by David Kurt Schneider.
Kelly Jo Driver created fraudulent payroll and tax forms that were submitted in support of the applications, and that, for her part in the scheme, Kelly Jo Driver received 10% of the funds disbursed by the SBA and participating lenders.
Defendant Information:
Defendant: Kelly Jo Driver, David Kurt Schneider, Leif Gerald Larsen
Crime: Conspiracy to commit wire fraud and bank fraud, wire fraud, bank fraud, and false, fictitious, or fraudulent claims
City and State: South Carolina, Kennewick, Washington, Pasco, Washington
Exact Date: Not specified
Sentence or Outcome: Currently pending
Dollar Amounts: At least $250,000 in CARES Act funding through the PPP and EIDL programs, and an additional $1,000,000 in CARES Act funding that were ultimately not approved
Key Facts
- State: Washington
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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