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Lloyd Pennebaker, 58, Accused of Wire Fraud in Covid-19 Recovery Fund Scheme
ANCHORAGE, AK – In a shocking turn of events, a federal grand jury has indicted local businessman Lloyd Pennebaker on charges of wire fraud related to his applications for Covid-19 recovery funds. The indictment, which was returned in October, alleges that Pennebaker made false statements on his loan applications, which were submitted through interstate communications.
Pennebaker, the owner of The Pennebaker Group and Cornerstone Auto Sales, is accused of applying for and obtaining Economic Injury Disaster (EIDL) loans for his business from April 2020 to May 2021. He allegedly received $122,500 in federal funding, which he obtained by lying about his criminal history on the loan applications.
Court documents reveal that Pennebaker was previously convicted of three felonies in September 2002. Despite this, he claimed to have no prior convictions on his loan applications. The indictment alleges that Pennebaker’s false statements were a key factor in his ability to obtain the Covid-19 recovery funds.
The case is being investigated by the Small Business Administration Office of Inspector General, with Assistant U.S. Attorney Carly Vosacek serving as the lead prosecutor. U.S. Attorney S. Lane Tucker and Special Agent in Charge Weston King announced the charges against Pennebaker.
Pennebaker’s indictment is a result of the ongoing efforts of the Covid-19 Fraud Enforcement Task Force, which was established by the Attorney General in May 2021. The task force is dedicated to preventing and investigating pandemic-related fraud, and it has been instrumental in bringing cases like Pennebaker’s to light.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. Pennebaker’s case is a stark reminder of the importance of honesty and transparency in the pursuit of Covid-19 recovery funds.
The case against Pennebaker serves as a warning to others who may be tempted to engage in similar schemes. The consequences of wire fraud can be severe, and those who are found guilty can face significant fines and imprisonment.
Key Facts
- State: Alaska
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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