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 involves defrauding the state or using government systems to steal from individuals.
- Tax Identity Theft: A criminal uses your ID and income details to file a tax return in your name and claim a refund before you do.
- Grant/Benefit Fraud: Falsely claiming unemployment, disability, or social grants that the perpetrator is not entitled to.