A Cape Coral man was sentenced to over three years in prison for defrauding COVID relief programs.
Diop McKenzie, 30, pleaded guilty to bank fraud, wire fraud and aggravated identity theft on June 11.
In May 2020, McKenzie submitted a fraudulent Paycheck Protection Program application to a financial institution that is federally insured by the Federal Deposit Insurance Corporation, according to court documents.
Documents say McKenzie also fraudulently applied for the PPP loan through the SBA in the amount of $20,832 using an identity other than his own.
McKenzie falsely reported that he had a business in Cape Coral and that the proceeds of the PPP loan would be used for payroll costs and rent for the business.
The financial institution approved the loan and funded the PPP loan for his alleged business, but the investigation revealed that the loan proceeds were not used for business related purposes.
Instead, documents say McKenzie used the funds for unauthorized purposes and for his own personal benefits.
In July 2020, McKenzie submitted a fraudulent Economic Injury Disaster Loan application to the SBA for a $97,000 loan using a name other than his own, along with another person's social security number.
McKenzie also falsely represented the revenue for his business and falsely represented the cost of good sold for the twelve months prior to the date of disaster.
Documents say McKenzie used another person's name, social security number, and date of birth in a fraudulent loan application that was submitted to the SBA.
The Coronavirus Aid, Relief and Economic Security (CARES) Act is a federal law which was enacted in March 2020.
It was designed to provide emergency financial assistance to millions of Americans who were suffering the economic effects from the COVID-19 pandemic.
The EIDL program was designed to provide economic relief to small businesses that were experiencing substantial financial disruption due to the pandemic.
According to reports, the court ordered McKenzie to pay restitution to the Small Business Administration and entered an order of forfeiture in the amount of $117,382.
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