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…
THE TUTUKA POWER STATION PROCUREMENT FRAUD (ESKOM)
Date: August 29, 2025 Perpetrator: Jessie Phindile Kubheka (Supplier Director)
Case Description: As part of the ongoing “cleaning up” of Eskom, Jessie Phindile Kubheka was sentenced to 12 years (with 5 years suspended) for defrauding the Tutuka Power Station. The case involved a sophisticated procurement syndicate that exploited Eskom’s emergency repair protocols. Kubheka’s company was contracted to deliver three high-specification containers for the power station. Only one container was ever delivered, and even that single unit failed to meet the required safety and technical specifications.
Despite the lack of delivery, Kubheka issued grossly inflated invoices, defrauding the utility of approximately R2.6 million. The Middelburg Specialised Commercial Crimes Court ordered Kubheka to repay the full amount. This case is significant because it marks a shift in Eskom’s strategy toward “naming and shaming” suppliers and pursuing full asset recovery. It serves as a stark warning to contractors that the 2026 climate of “Zero Tolerance” for state-owned enterprise (SOE) fraud is backed by active judicial enforcement.
Link to Original: Eskom Official – Tutuka Fraud Sentencing