Former soldier charged with fraud involving CARES Act in Ky.
Published 9:30 am Thursday, September 28, 2023
A federal grand jury in Paducah has indicted an Oklahoma man with one count of conspiracy to commit wire fraud and one count of wire fraud involving the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) financial assistance program.
According to the indictment, between February 2021 and April 29, 2021, Kendarian Quentrell Dixon, 23, of Yukon, Oklahoma, conspired with unnamed persons to file a fraudulent application for a loan from the Paycheck Protection Program (PPP), a financial assistance program established by the CARES Act. At the time, Dixon was a soldier in the United States Army stationed at Fort Campbell. Dixon received $20,833 from the loan, which he transferred to associates and used for personal expenses.
The Small Business Administration (SBA) PPP loans were designed to provide a direct incentive for small businesses who were in operation on February 15, 2020, to keep their workers on the payroll during the COVID-19 pandemic. PPP loan proceeds were required to be used by the business on certain permissible expenses. Interest and principal on PPP loans could be entirely forgiven if the business spent the loan proceeds on the allowable expenses within a designated period and used a certain percentage of the PPP loan proceeds on payroll expenses.
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Dixon made his initial court appearance Tuesday before a U.S. Magistrate Judge of the U.S. District Court for the Western District of Kentucky. If convicted, Dixon faces a maximum sentence of 40 years in prison, however a federal district court judge will determine any sentence after considering the sentencing guidelines and other statutory factors. There is no parole in the federal system.
The FBI Paducah Satellite Office and the United States Army CID at Fort Campbell are investigating the case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.