News Summary
A construction company CEO in Visalia has been arrested for allegedly defrauding the Paycheck Protection Program and unlawfully securing over $4 million in COVID-19 relief funds. Joey Wayne Mackey is accused of submitting false applications and manipulating payroll expenses to misappropriate taxpayer-backed money intended for business support. The case reveals misuse of funds, including money laundering for personal investments, prompting a federal investigation involving several agencies. This case highlights the ongoing efforts to combat fraud related to COVID-19 relief funding.
Visalia: Construction CEO Arrested for Alleged COVID-19 Relief Fraud
Visalia, California — A local construction company CEO has been arrested on federal charges after allegedly fraudulently securing over $4 million in COVID-19 relief funds. Joey Wayne Mackey, age 45, CEO of the construction firm, was taken into custody based on a federal complaint filed last Friday. Prosecutors accuse him of falsifying documents to obtain the funds and misusing the money for personal investments.
Details of the Alleged Fraudulent Activities
The case centers around Mackey’s submission of false applications for Paycheck Protection Program (PPP) loans, which were designed to provide financial assistance to small businesses impacted by the COVID-19 pandemic. Investigators believe Mackey filed applications between April and June 2020 for three separate businesses: Forcum-Mackey Construction Inc., JWM Inc., and Mack Aviation LLC.
The complaint states that Mackey’s applications misrepresented key information, including inflating the number of employees and payroll expenses. These misrepresentations allegedly resulted in the disbursement of more than $4,082,550 in taxpayer-backed funds directly to Mackey’s businesses. The funds were intended to support payroll and operational costs but were allegedly obtained through fraudulent means.
Misuse and Laundering of Funds
Federal authorities allege that Mackey engaged in money laundering activities by making fraudulent payroll payments to family members, including minor children. These payments are reported to have been used to disguise the source of the funds and to divert money for personal gain. Following these payments, records indicate that Mackey withdrew the funds and used them to purchase office parks, luxury apartments, and other investments. Investigators claim that Mackey continued these acquisitions and luxury purchases using the proceeds derived from the COVID-19 relief loans, at least through 2023.
Investigative Agencies and Legal Consequences
The investigation into Mackey’s activities was conducted collaboratively by the Federal Bureau of Investigation (FBI), the Office of Inspector General of the Federal Deposit Insurance Corporation (FDIC), and the Small Business Administration (SBA) Office of Inspector General. These agencies collaborated to gather evidence and build the case against Mackey.
According to federal law, if Mackey is convicted of federal fraud charges, he faces significant penalties. These include potential imprisonment of up to 30 years and fines reaching $1 million.
Background and Context
The Paycheck Protection Program was launched as part of the federal government’s response to the economic impact of the COVID-19 pandemic. It aimed to provide quick access to funding for small businesses to sustain employment and operations during global health crises. However, the program was also targeted by fraud, with alerts raised about individuals and entities abusing the system. The case against Mackey exemplifies such alleged abuse, highlighting ongoing efforts to detect and prosecute fraud related to COVID-19 relief efforts.
This arrest underscores the federal government’s commitment to ensuring transparency and accountability in the distribution of pandemic relief funds. It also serves as a reminder to businesses that misuse of such funds can lead to severe criminal charges and penalties.
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Additional Resources
- GV Wire: Visalia Construction CEO Mackey Arrested
- Your Central Valley: Construction CEO COVID Relief Fraud
- KMPH: Visalia CEO Arrested for Allegedly Embezzling $4M
- Google Search: COVID-19 Paycheck Protection Program
- Encyclopedia Britannica: Paycheck Protection Program
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