A man from London, Kentucky, Joshua Pennington, aged 50, has admitted to participating in a money laundering conspiracy involving fraudulent COVID relief loans. The plea was entered before U.S. Magistrate Judge Hanley Ingram. Pennington's co-defendant, Nicole Pennington, aged 48, faces multiple charges including wire fraud and money laundering.
The plea agreement reveals that false statements were made on applications for Small Business Administration (SBA) loans by the co-defendant. These applications resulted in $1,090,398.35 being fraudulently obtained between May 2020 and June 10, 2021. The funds were laundered through transactions exceeding $10,000 and used for personal expenses such as home renovations and travel.
Carlton S. Shier IV, United States Attorney for the Eastern District of Kentucky; Kelly K. Moening of the Treasury Inspector General for Tax Administration; and Karen Wingerd of IRS-Criminal Investigations announced the case details.
The investigation was carried out by federal agencies with Assistant U.S. Attorney Brittany Dunn-Pirio prosecuting the case.
Joshua Pennington's sentencing is set for May 20, 2025. He could face up to ten years in prison along with possible restitution or fines as determined by the court based on federal guidelines.
The COVID-19 Fraud Enforcement Task Force was established on May 17, 2021, to address pandemic-related fraud through enhanced government agency cooperation.
Information about attempted COVID-19 related fraud can be reported to the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or online via their complaint form.