A man has been sentenced for stealing over $1 million in COVID funds.
Joshua Pennington, 51, of London, was sentenced to 22 months in federal prison for conspiracy to commit money laundering of fraudulently obtained Economic Injury Disaster Loans and Paycheck Protection Program loans, according to the U.S. Attorney’s Office for the Eastern District of Kentucky.
Under federal law, Pennington must serve 85 percent of his prison sentence.
According to Pennington’s plea agreement, his co-defendant, Nicole Pennington, made materially false statements on applications for Small Business Administration (SBA) loans made available to qualified applicants in response to the COVID-19 pandemic.
Six of the loan applications were approved for a total of $1,090,398.35 in fraudulently obtained SBA loan proceeds.
“Between May 2020 and June 10, 2021, Joshua Pennington and his co-defendant knowingly laundered over $1,000,000 in criminally derived funds, via transactions over $10,000. They used the money to renovate their kitchen, pay for plastic surgery, purchase a Viking River Cruise trip, withdraw cash, purchase vehicles, and pay off loans and mortgages,” prosecutors said.
Nicole Pennington is scheduled for sentencing on January 27, 2026.
By Ken Howlett, News Director
Contact Ken at ken@k105.com
