A man from Washington, D.C. has been arrested and charged after fraudulently obtaining more than $2.1 million in funds from the government’s coronavirus Paycheck Protection Program.
A criminal complaint unsealed last week alleges that 41-year-old Kenneth Gaughan requested and obtained $2.1 million in PPP and Economic Injury Disaster Loans relief funds by applying on behalf of several companies that falsely claimed to register emotional support animals. He also allegedly made false representations to receive the loan funds, including forged paperwork and bank records.
When Gaughan received the funds, he proceeded to purchase a 2020 Cruisers Yachts 338 CX 33-foot watercraft valued at $300,000, a $1.13 million house, and a 2020 Kia Stinger worth $46,000.
The authorities seized the yacht, the Kia, and Gaughan’s investment and bank accounts after arresting him. They are also filing a civil forfeiture complaint against the house.
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The United States Attorney’s Office for the District of Columbia adds that Gaughan has also been charged for a separate embezzlement scheme relating to his alleged theft of $472,000 in funds from the Catholic Archdiocese of Washington, D.C. between 2010 and 2018.
“It is unconscionable to fraudulently attempt to gain access to a program aimed at assisting small businesses that are struggling to survive for personal gain and profit,” SBA OIG’s Eastern Region Special Agent-in-Charge Kevin Kupperbusch said in a statement. “SBA OIG and its law enforcement will aggressively investigate allegations of fraud involving SBA’s programs. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
News of this fraud comes just a couple of weeks after a 29-year-old in Florida was charged with also ripping off the Paycheck Protection Program to the tune of $3,984,557 and proceeding to buy a Lamborghini Huracan Evo.
Kia Stinger pictures Brad Anderson / Carscoops