A U.S. Justice Department logo or seal showing Justice Department headquarters, known as "Main Justice," is seen behind the podium in the Department's headquarters briefing room before a news conference with the Attorney General in Washington, January 24, 2023. (Reuters File)
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A Visalia construction company CEO was arrested Friday on a federal complaint accusing him of fraudulently obtaining more than $4 million in COVID-19 relief funds and using the money to build a real estate empire, U.S. Attorney Eric Grant said.
Court documents allege that between April and June 2020, Joey Wayne Mackey, 45, submitted false Paycheck Protection Program loan applications for three businesses: Forcum-Mackey Construction Inc., JWM Inc., and Mack Aviation LLC.
The applications allegedly inflated employee numbers and payroll costs, leading a bank to disburse $4,082,550 in taxpayer-backed funds.
Prosecutors said Mackey laundered the money through fraudulent payroll payments to relatives, including his minor children, then withdrew the funds to purchase office parks, luxury apartments, and other investments.
He allegedly continued making acquisitions and luxury purchases tied to the loans through at least 2023.
The case was investigated by the FBI, the FDIC Office of Inspector General and the SBA Office of Inspector General.
If convicted, Mackey faces up to 30 years in prison and a $1 million fine.
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