Disaster Loan Fraud Rocks Port Arthur, Texas As Businessman Gets Off Easy
A Port Arthur businessman, Kenneth W. Matthews, 59, of Fort Pierce, Florida, has been sentenced for disaster loan fraud in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Mattthews pleaded guilty on Mar. 12, 2014, to conspiracy to defraud the Small Business Administration of disaster loan funds and was sentenced to 5 years probation by U.S. District Judge Thad Heartfield. The court also ordered Matthews to pay restitution in the amount of $500,000 to the SBA.
According to information presented in court, Matthews conspired with his general contractor and subcontractor to submit falsely inflated invoices and checks for repair work done after Hurricanes Humberto and Ike in order to obtain low interest disaster repair loans extended by the Small Business Administration.
Mattthews, the former owner of MegaBowl in Port Arthur, received SBA disaster loan proceeds of $750,000 after Hurricane Humberto and $760,000 after Hurricane Ike. The loan funds were disbursed solely for repairs and other expenses associated with the hurricanes and were not allowed for other general business or personal use.
Matthews’ declining health was a factor in his sentencing. The case was investigated by the Small Business Administration-OIG and the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Robert L. Rawls.
The U.S. government has a history of cracking down on disaster-related federal crimes through task forces like the Hurricane Katrina Fraud Task Force, which includes members of the FBI, the Federal Trade Commission, the U.S. Postal Inspection Service, and the Executive Office for United States Attorneys, among others.
In this case, the defendant was Kenneth W. Matthews, who pleaded guilty to conspiracy to defraud the Small Business Administration of disaster loan funds. The crime occurred in Port Arthur, Texas, from January 2008 to May 2010. Matthews was sentenced to 5 years probation and ordered to pay $500,000 in restitution to the SBA.
Mandatory facts include:
- Defendant: Kenneth W. Matthews
- Criminal charges: Conspiracy to defraud the Small Business Administration of disaster loan funds
- City and state: Port Arthur, Texas
- Date: Mar. 12, 2014 (plea), today (sentencing)
- Sentence: 5 years probation, $500,000 restitution
- Dollar amount: $500,000 (restitution)
Related Federal Cases
- Kenneth W. Matthews, Disaster Loan Fraud, Texas 2023 · Florida
- Robert Aaron Green, Bank Fraud, Texas 2023 · Florida
- Perry Don Cortese, International Money Laundering and Mail Wire Fraud, Texas 2012 · Florida
- Peggy Ann Fulford, Wire Fraud, Texas 2024 · Florida
- Alvin Lee Turner, Wire Fraud Conspiracy, Texas 2023 · Florida
Key Facts
- State: Texas
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
