An Elizabethtown woman has pled guilty in federal court to fraudulently receiving over $1.3 million in Coronavirus Aid, Relief, and Economic Security Act (CARES) money.
Kelly Woods, 43, pled guilty on Monday to three counts of wire fraud related to a CARES Act financial assistance program, according to U.S. Attorney Michael A. Bennett of the Western District of Kentucky.
During the plea hearing, Woods admitted that between May 1, 2020, and March 31, 2021, she filed three fraudulent applications for Paycheck Protection Program (PPP) loans, resulting in the theft of $1,318,955.
“Woods utilized the entities Philips Healthcare LLC and LB Acquisitions LLC. Woods organized LB Acquisitions LLC after the onset of the COVID-19 pandemic. She then exaggerated the number of employees and payroll expenses of those entities in the fraudulent applications,” prosecutors said.
The Small Business Administration (SBA) PPP loans were designed to provide a direct incentive for small businesses that were in operation on February 15, 2020, to keep their workers on the payroll. 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.
Woods is scheduled to be sentenced on June 22, 2023, where she faces up to 20 years in prison.
Pursuant to the terms of the plea agreement, Woods will also forfeit certain real property and a vehicle, prosecutors said.
By Ken Howlett, News Director
Contact Ken at ken@k105.com
