A Phenix City man has been sentenced to 92 months in federal prison for his involvement in a COVID-19 loan scheme. Kyle Nathan Carlisle, 39, was convicted of wire fraud and money laundering related to loans obtained through the CARES Act and the Economic Injury Disaster Loan (EIDL) program. Acting United States Attorney Kevin Davidson announced the sentence on January 6, 2025. Following his imprisonment, Carlisle will be subject to three years of supervised release. Federal inmates are not eligible for parole.
The CARES Act, enacted in March 2020, aimed to provide financial assistance to Americans affected by the COVID-19 pandemic. It established the EIDL program, managed by the Small Business Administration, to support small businesses with working capital for expenses like payroll and rent.
Court records reveal that between July 2020 and April 2021, Carlisle applied online for 23 EIDL loans, including duplicates. Five loans were funded after he submitted false information about business revenue and employee numbers while denying any recent felony convictions despite having two from 2016 in Russell County, Alabama. He also used forged documents such as fake business licenses. Through this scheme, Carlisle received approximately $600,000 from four applications; some funds were recovered before clearing his accounts. The total amount sought was $3,470,832. He was also found guilty of using illegal proceeds for personal purchases like a vehicle.
In addition to prison time, Carlisle must pay $547,846.54 in restitution to the Small Business Administration and forfeit an equivalent amount to the U.S. government.
"Kyle Carlisle fabricated lies and forged documents in a scheme to divert taxpayer money for his own self-enrichment," stated Acting U.S. Attorney Davidson. "The EIDL program was intended to provide relief to actual struggling businesses during a pandemic that created an enormous economic burden on the entire country."
The case was investigated by the FBI Mobile Field Office with help from the Small Business Administration Office of Inspector General and the Alabama Department of Labor. Assistant United States Attorney J. Patrick Lamb prosecuted.
Reports of attempted COVID-19 fraud can be made via the Department of Justice’s National Center for Disaster Fraud Hotline or their web complaint form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.