Louisville, KY – In a blow to those who seek to exploit the system, a local woman has been sentenced to federal prison for her role in a CARES Act fraud scheme.
A 67-year-old Louisville woman, Darlene McCoy, was handed down a 1 year and 2 months sentence for her role in submitting four fraudulent Coronavirus Aid, Relief, and Economic Security (CARES) Act applications. The sentence was handed down by a federal judge, along with a 3-year term of supervised release.
According to court documents, McCoy filed, or caused to be filed, one fraudulent application for an Economic Injury Disaster Loan (EIDL) and three applications for Paycheck Protection Program (PPP) loans between June 18, 2020, and May 19, 2021, seeking more than $182,000 and resulting in the theft of $165,416.
Mccoy utilized the entities Letz Get It Crackin’, LLC and Darlene McCoy d/b/a Reds Creative Events to file the applications. McCoy organized Letz Get It Crackin’ after the onset of the Covid 19 pandemic and did not register the entity Darlene McCoy with the Commonwealth of Kentucky.
McCoy falsely exaggerated the number of employees, revenue, cost of goods sold, and payroll expenses of those entities in the fraudulent applications and provided false tax forms in support of the applications.
This case was investigated by the Treasury Inspector General for Tax Administration. Assistant U.S. Attorney Nicole Elver prosecuted the case.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky and Kelly K. Moening, Special Agent in Charge, Treasury Inspector General for Tax Administration, Great Lakes Field Division, made the announcement.
The COVID-19 pandemic has been marred by widespread fraud, with billions of dollars being stolen from relief programs. This case serves as a reminder that those who seek to exploit the system will be held accountable.
In addition to her prison sentence, McCoy was also ordered to pay $165,416 in restitution. There is no parole in the federal system.
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Key Facts
- State: Kentucky
- Agency: DOJ USAO
- Category: Financial Crimes
- Source: Official Source ↗
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