COVINGTON, Ky. – Malcolm Culmer, a 36-year-old Michigan man, has pleaded guilty to wire fraud and money laundering charges, admitting to an elaborate scheme that defrauded the government of over $1 million in COVID-19 pandemic relief funds.
Culmer, who targeted both unemployment benefits and the Economic Injury Disaster Loan (EIDL) Program, submitted eight fraudulent EIDL applications on behalf of fictitious companies. His schemes netted him approval for nearly $1.2 million in loans, with a portion of that sum already dispersed. Additionally, Culmer secured over $39,000 in pandemic unemployment benefits by presenting false information about his employment and residence.
The defendant’s fraudulent activities didn’t end there. Culmer is accused of using the ill-gotten funds to engage in numerous transactions exceeding $10,000, including cash withdrawals and vehicle purchases to bolster his vehicle rental business.
Paul McCaffrey, Acting U.S. Attorney for the Eastern District of Kentucky, Joseph V. Cuffari Ph.D., Inspector General of the Department of Homeland Security (DHS-OIG), and Mathew Broadhurst, Special Agent in Charge of the U.S. Department of Labor’s Office of Inspector General (DOL-OIG) Southeast Region, announced Culmer’s guilty plea. The investigation was a collaborative effort between DHS-OIG and DOL-OIG.
Assistant U.S. Attorney Brittany Dunn-Pirio is handling the prosecution on behalf of the United States. Culmer is set to be sentenced December 16, where he faces a maximum sentence of 20 years in prison. His sentencing will adhere to the U.S. Sentencing Guidelines and federal statutes.
Established by the Attorney General in May 2021, the COVID-19 Fraud Enforcement Task Force has been instrumental in combating pandemic-related fraud. For those with information on potential COVID-19 fraud, contact the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or file a complaint online at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Key Facts
- State: Kentucky
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|Cybercrime|Public Corruption
- Source: Official Source ↗
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