Ky. Man pleads guilty to fraud, gets $1.3 million COVID relief loan


LEXINGTON, Ky. (FOX 56/ WKYT) – A Versailles man on Thursday pleaded guilty to conspiring to commit money transfer fraud to obtain Paycheck Protection Program (PPP) loans under pretext.

Under his April 2020 guilty plea, Randall “Rocky” Blankenship, Jr., 49, filed four fraudulent applications for PPP loans to four different business organizations he founded. .

The United States Attorney’s Office for the Eastern District of Kentucky said As part of his fraudulent PPP loan applications, Blankenship, with the assistance of a certified public accountant, created false tax documents and payroll records showing that his businesses there are hundreds of thousands of dollars in quarterly payroll. However, none of the units have payroll costs.

Blankenship applied through Bank of Kentucky and Independent Bank; and as a result he received fraudulent PPP loans totaling $1,323,829.

The US attorney’s office said in his defense he used some of the funds for an RV business he owned as well as for personal use, including paying off casino debt and buy real estate.

Blankenship is expected to be sentenced on March 17, 2022.

Blankenship has agreed to pay compensation of $1,323,829. He faces a maximum sentence of twenty years in prison, a fine of no more than $250,000, and supervised release for no more than three years.

https://foxlexington.com/news/kentucky/ky-man-pleads-guilty-to-fraud-taking-1-3m-in-covid-relief-loans/ Ky. Man pleads guilty to fraud, gets $1.3 million COVID relief loan

Britta Zeltmann

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