KY Woman Gets 44 Months in COVID Loan Scam

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LONDON, KY – Nicole Pennington, 50, is headed to federal prison for nearly four years after admitting she ripped off COVID-19 relief programs. U.S. District Judge Claria Horn Boom handed down a 44-month sentence Tuesday for wire fraud and conspiracy to launder the cash.

Pennington and her husband, Joshua Pennington, built a scheme starting in March 2020, right as the pandemic hit and the government started throwing money at struggling businesses. They filed around 30 applications for Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL), claiming funds for real and fake businesses. Every single application was a lie, backed up by forged tax returns and other bogus paperwork, according to court documents.

The scheme worked. The Small Business Administration approved six of the applications, sending over $1,090,398.35 into Pennington’s pockets. But instead of keeping workers on the payroll, as the programs intended, the Penningtons used the money to fund a personal makeover. Prosecutors laid out a laundry list of expenses: a kitchen renovation, plastic surgery, a luxury Viking River Cruise, new vehicles, and wiping out their existing debts.

Joshua Pennington already received a 22-month sentence for his part in washing the dirty money. Nicole Pennington will serve 85% of her 44-month term under federal guidelines.