NEWPORT NEWS, Va. – A Hampton man was sentenced today to 27 months in prison for falsely applying for loans intended to grant COVID-19 relief to small businesses.
Marlon McKnight, 44, was sentenced by U.S. District Judge Arenda Wright Allen for falsely applying for four loans administered by the Small Business Administration in August 2020 and January and February 2021. McKnight applied for three Economic Injury Disaster Loans and one Paycheck Protection Program loan using false information, including false business names, income, and employee information, as well as a false tax return.
McKnight sought over $100,000 in loans and obtained approximately $35,000. He used the $35,000 obtained to pay his personal expenses, contrary to the purposes for these loans. McKnight submitted certain false applications from a halfway house and others after just being released from the Bureau of Prisons.
McKnight had been incarcerated previously for a federal fraud scheme in which he, his wife, and several others victimized banks and stole individual identities. McKnight was sentenced to 30 months for that scheme and ordered to pay nearly $100,000 in restitution.
In addition to the 27-month sentence, McKnight was sentenced to an additional four months of consecutive incarceration for his violation of supervised release from his prior case.
Assistant U.S. Attorney Brian Samuels prosecuted the case, which was investigated under the leadership and coordination of the Newport News Financial Crimes Task Force.
The case was announced after sentencing by U.S. Attorney Jessica D. Aber for the Eastern District of Virginia, FBI’s Norfolk Field Office Special Agent in Charge Brian Dugan, and U.S. Postal Inspection Service’s Washington Division Acting Inspector in Charge Tira Hayward.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:21-cr-71.
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Key Facts
- State: Virginia
- Category: White Collar Crime|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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