Trucking Company Owner Sought $467K in PPP Loans For Defunct Business, DOJ Alleges
Harrisburg, PA – A former trucking company owner is facing decades in prison after the U.S. Department of Justice (DOJ) accused him of scheming to fraudulently acquire $467,200 in Paycheck Protection Program (PPP) loans.
Keith McConnell, 43, of Carlisle, PA, has been charged with wire fraud and money laundering, the United States Attorney’s Office for the Middle District of PA announced last week.
The criminal complaint against McConnell alleges he submitted fraudulent PPP loan applications and forged documents on behalf of his Carlisle-area trucking company, KB Transportation LLC.
According to court documents, on June 5, 2020, McConnell falsely certified that KB Transportation LLC employed twenty-six employees and had monthly payroll expenses totaling $124,800.
DOJ prosecutors assert that in both 2019 and 2020, KB Transportation LLC was not in business, had no employees, and had no payroll expenses.
As a result of the alleged fraud, McConnell received $312,000 in PPP loan proceeds.
Further, DOJ prosectors said that within weeks of receiving the PPP funds, McConnell and co-conspirators used the money to make unauthorized expenditures including the purchase of a residential property, two vehicles, and stock market investments.
Then, On January 20, 2021, McConnell again allegedly used KB Transportation LLC to apply for a second PPP loan in the amount of $155,200.
The complaint further alleges he again submitted false and fraudulent loan applications and documents.
The second PPP loan was never disbursed, the DOJ said.
Data from the Federal Motor Carrier Safety Administration (FMCSA) indicates KB Transportation LLC was based in Newville, PA.
According to FMCSA, interstate authority was granted to KB Transportation on December 16, 2015, but was revoked less than four years later on April 23, 2019.
Additionally, KB Transportation LLC reported just one driver, one power unit, and 80,000 driving miles in the year 2018.
If convicted, McConnell could be sentenced to up to 30 years in prison, a term of supervised release following imprisonment, and a $1 million fine.