LONDON, Ky. (WYMT) – A London woman has been sentenced to federal prison for her role in a scheme to fraudulently obtain more than $1 million in COVID-19 relief loans and then launder the proceeds, according to court records.
Nicole Pennington, 50, was sentenced Tuesday to 44 months in prison by U.S. District Judge Claria Horn Boom after pleading guilty to wire fraud and conspiracy to commit money laundering. Prosecutors said the case involved fraudulent applications for Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) loans administered by the Small Business Administration (SBA).
Prosecutors: false applications backed by fake documents
According to Pennington’s plea agreement, from March 2020 through May 2022, she devised a scheme to defraud the government by submitting materially false information on PPP and EIDL applications.
Investigators said Pennington…
This remains the most prevalent form of financial crime globally. It targets the direct access points to your money: your cards and your bank accounts.
- Skimming: Criminals use small devices called “skimmers” placed over ATM or point-of-sale card slots to capture the data from your card’s magnetic strip.
- Card-Not-Present (CNP) Fraud: This occurs during online shopping where a physical card isn’t required. Thieves use stolen card numbers, expiry dates, and CVV codes to make unauthorized purchases.
- Account Takeover (ATO): A hacker gains access to your online banking credentials (often through malware or phishing) and changes the contact details or passwords, locking you out while they drain your funds.