News Summary
Joey Wayne Mackey, CEO of a construction company in Visalia, was arrested for allegedly defrauding the COVID-19 relief fund. Accused of securing over $4 million through false loan applications, Mackey reportedly inflated employee counts and payroll costs to secure loans. Investigations revealed the funds were laundered through fraudulent payments, leading to luxury real estate investments. If convicted, Mackey faces up to 30 years in prison and substantial fines, highlighting the ongoing issues of fraud within relief programs.
Visalia CEO Arrested for Allegedly Fraudulent COVID-19 Relief Fund Acquisition
Joey Wayne Mackey, a 45-year-old CEO of a Visalia construction company, was arrested on a federal complaint on Friday. He is accused of fraudulently obtaining over $4 million in COVID-19 relief funds through deceptive loan applications.
U.S. Attorney Eric Grant announced the criminal charges against Mackey, detailing that the alleged fraud occurred between April and June 2020. Mackey is accused of submitting false Paycheck Protection Program (PPP) loan applications for three separate businesses: Forcum-Mackey Construction Inc., JWM Inc., and Mack Aviation LLC. Prosecutors claim that these applications contained inflated employee numbers and exaggerated payroll costs to justify the amounts sought in loans.
As a result of the fraudulent applications, a bank disbursed $4,082,550 in taxpayer-backed funds to Mackey. Authorities allege that he laundered these funds through fraudulent payroll payments, which included payments to family members, even minor children. Following these payments, Mackey reportedly withdrew funds to finance various real estate investments, including the purchase of office parks and luxury apartments. Investigators noted that Mackey continued to engage in such real estate acquisitions and other luxury purchases funded by these loans, persisting in this behavior at least through 2023.
Investigation and Legal Consequences
The investigation into Mackey’s activities involved collaboration among several federal entities, including the FBI, the FDIC Office of Inspector General, and the SBA Office of Inspector General. If convicted of the charged offenses, Mackey could face substantial penalties, including up to 30 years in prison and fines reaching $1 million.
Understanding the Paycheck Protection Program
The Paycheck Protection Program was initiated in response to the COVID-19 pandemic to provide financial aid to small businesses struggling to maintain their workforce. Intended as an emergency funding measure, the program offered forgivable loans to help cover payroll and other essential costs. However, amid the urgency of the pandemic, there have been numerous reports of fraud associated with the program, where individuals exploited the system for personal financial gain.
Background on Joey Wayne Mackey
Mackey’s construction business, operating in Visalia, was one of many companies that sought assistance from the PPP during the economic disruptions caused by the pandemic. The allegations against him mark a significant example of misuse of government relief funds intended to support struggling businesses and their employees. This case reflects broader concerns regarding accountability in the distribution of emergency financial aid during times of crisis.
As the legal proceedings unfold, the case against Mackey serves as a reminder of the importance of integrity in financial dealings and the potential consequences of fraudulent activities, particularly in the context of programs designed to assist those in need.
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Additional Resources
- GV Wire: Visalia Construction CEO Mackey Arrested
- Your Central Valley: Construction CEO COVID Relief Fraud
- KMPH: Visalia CEO Arrested for Allegedly Embezzling $4M
- Google Search: COVID-19 Paycheck Protection Program
- Encyclopedia Britannica: Paycheck Protection Program
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INDIANAPOLIS STAFF WRITER The INDIANAPOLIS STAFF WRITER represents the experienced team at HEREIndianapolis.com, your go-to source for actionable local news and information in Indianapolis, Marion County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Indianapolis 500, Indy Jazz Fest, and the Indiana State Fair. Our coverage extends to key organizations like the Indy Chamber and Visit Indy, plus leading businesses in motorsports and healthcare that power the local economy such as Indianapolis Motor Speedway and IU Health. As part of the broader HERE network, we provide comprehensive, credible insights into Indiana's dynamic landscape.
