Breaking News
More () »

$2.3 million Covid relief loan scam goes wrong | Holly Springs SBA employee sentenced to prison

Small Business Administration employee Lakeith Faulkner filed more than $11 million worth of fraudulent loans for borrowers in exchange for pay.
Credit: Alex - stock.adobe.com

MEMPHIS, Tenn. — A Holly Springs, Mississippi man who works for Small Business Administration (SBA) was sentenced to 62 months in prison after he fraudulently helped several borrowers submit more than $11 million worth of Covid relief loan applications, the U.S. Attorney's Office said.

Court documents show that 31-year-old Lakeith Faulkner submitted Economic Injury Disaster Loans (EIDL) loans for borrowers, receiving pay from the borrowers in exchange.

Faulker and Norman Beckwood, who is also charged for helping Faulkner commit fraud, racked up on $2.3 million from the loan scam, U.S. Attorney's Office said. 

Faulkner and Beckwood both plead guilty to one count of conspiracy to commit wire fraud. 

Faulkner, who plead guilty on December 7, 2022, must be under supervised release after serving his 62 months of jail time, U.S. Attorney Office said. 

He is also required to pay $10,620,452.26 in restitution to the SBA. 

Beckwood, who plead guilty on January 17 this year, is still waiting for his sentencing.

Small Business Administration Employee Sentenced in Covid Relief Fraud.

The case is still being investigated by the Federal Bureau of Investigation (FBI), the U.S. SBA Office of Inspector General, and the U.S. Treasury Inspector General for Tax Administration. 

Assistant U.S. Attorney Clayton A. Dabbs and Parker King of the Northern District of Mississippi are prosecuting the case.

Before You Leave, Check This Out