A California building corporate CEO has been charged with fraud in allegedly acquiring greater than $4 million in paycheck coverage loans that have been a part of federal Covid-19 pandemic aid.
The alleged scheme integrated developing accounts within the names of his minor kids, whom he claimed as workers, after which spending the cash on place of work parks and comfort residential actual property that he therefore rented out, in line with U.S. Legal professional Eric Grant.
Joey Wayne Mackey, 45, of Visalia used to be indicted September 18 in U.S. District Courtroom on six counts of financial institution fraud and 8 counts of cash laundering.
He’s accused of filing fraudulent Paycheck Coverage Program mortgage programs for 3 of his firms, together with Forcum-Mackey Development Inc. of Ivanhoe, of which he’s president and CEO. The loans have been created to lend a hand stay workers on trade payrolls right through the commercial slowdown of the pandemic, and they didn’t should be repaid if used for that goal.
The entire programs for the companies between April and June 2020 overstated worker numbers and payroll prices, main a financial institution “to disburse $4,082,550 in price range it in a different way do not have given,” in line with the U.S. lawyer’s place of work.
“Over the next months, Mackey laundered the PPP mortgage price range via fraudulent payroll bills to members of the family (together with his minor kids), whilst Mackey managed the financial institution accounts of the ones members of the family.”
Then in October 2020, Mackey allegedly withdrew the cash from relations’ accounts to shop for “revenue-generating actual property.” The lawyer’s place of work mentioned he persisted to make actual property investments with PPP cash via a minimum of 2023.
He additionally carried out to have loans forgiven, beneath the phrases of this system, in line with a sworn statement filed August 29, 2025, via FBI Particular Agent Hamilton Hiatt. In an utility July 8, 2021, he sought $3.9 million in mortgage forgiveness from the Small Industry Management. Up till February 10, 2025, the SBA had no longer denied or authorized the forgiveness utility. That day, Mackey paid off the mortgage steadiness after receiving a pre-indictment plea be offering per week earlier than from the U.S. Legal professional’s Administrative center, in line with the affidavit.
Mackey used to be denied forgiveness for a $156,325 PPP mortgage, and he paid off that steadiness in 2022, the affidavit mentioned.
Mackey has posted a $250,000 bond and faces as much as 30 years in jail and a $1 million advantageous if convicted, in line with the lawyer’s place of work.
His arrest stems from an investigation via a California COVID-19 Fraud Enforcement Strike Pressure established via the U.S. Division of Justice. It concerned the FBI, the FDIC Administrative center of Inspector Basic, and the Small Industry Management Administrative center of Inspector Basic.
