News Summary
Joey Wayne Mackey, a Visalia construction company CEO, has been arrested for allegedly defrauding over $4 million in COVID-19 relief funds. Federal prosecutors claim he submitted false loan applications for several companies, inflating employee numbers and payroll costs. After receiving the funds, Mackey is accused of misusing the money for personal investments, including real estate. His case highlights the ongoing challenges in preventing fraud within federal relief programs.
Visalia CEO Arrested for Allegedly Defrauding COVID-19 Relief Funds
Visalia, CA – Joey Wayne Mackey, a 45-year-old CEO of a local construction company, was arrested on Friday under a federal complaint that accuses him of fraudulently securing over $4 million in COVID-19 relief funds. The U.S. Attorney for the Eastern District of California, Eric Grant, announced the charges against Mackey, who is believed to have submitted inflated loan applications to the Paycheck Protection Program (PPP).
Details of the Allegations
According to federal prosecutors, Mackey submitted false loan applications between April and June 2020 to obtain nearly $4,082,550 in taxpayer-backed funds. These applications were made on behalf of three companies: Forcum-Mackey Construction Inc., JWM Inc., and Mack Aviation LLC. The charges allege that Mackey inflated employee numbers and payroll costs in order to qualify for larger loan amounts.
Fraudulent Fund Use
Once the funds were disbursed, Mackey reportedly laundered the money, making fraudulent payroll payments to family members, which even included payments made to his minor children. After transferring these funds, he is alleged to have withdrawn money to invest in real estate, purchasing office parks, luxury apartments, and other high-value assets. Reports indicate that these activities continued as recently as 2023, showing a pattern of misuse of the funds over an extended period.
Investigative Background
This case is currently under investigation by several federal agencies, including the Federal Bureau of Investigation (FBI), the Federal Deposit Insurance Corporation (FDIC) Office of Inspector General, and the Small Business Administration (SBA) Office of Inspector General. These agencies worked collaboratively to track the fraudulent activity and gather evidence against Mackey.
Potential Consequences
If convicted on all charges, Mackey could face up to 30 years in prison, along with a potential fine of $1 million. The severity of the penalty indicates the seriousness with which federal authorities treat cases of fraud associated with COVID-19 relief programs.
COVID-19 Relief and Fraud Concerns
The COVID-19 pandemic prompted a rapid rollout of various relief programs aimed at helping struggling businesses. The Paycheck Protection Program was designed to provide loans to help businesses keep their workforce employed during the pandemic. However, the swift implementation and substantial funding also led to numerous instances of fraud, highlighting vulnerabilities within the system.
As investigations continue, cases like Mackey’s illustrate the ongoing challenges faced by federal agencies in ensuring that relief funds are utilized correctly and fairly. Public awareness of fraudulent activities related to government assistance programs plays a critical role in fostering accountability and safeguarding taxpayer money.
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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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CLEVELAND STAFF WRITER The CLEVELAND STAFF WRITER represents the seasoned team at HERECleveland.com, your premier source for actionable local news and information in Cleveland, Cuyahoga County, and beyond, delivering "news you can use" with in-depth coverage of product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news impacting the region—backed by years of expert reporting and robust community input, including local press releases and business updates, while providing top reporting on high-profile events like the Rock and Roll Hall of Fame inductions, Cleveland International Film Festival, and holiday parades, alongside key organizations such as the Cleveland Clinic, Cleveland Orchestra, and Great Lakes Science Center, plus leading businesses in manufacturing and healthcare like Sherwin-Williams and University Hospitals, and as part of the broader HERE network including HEREDayton.com, offering comprehensive, credible insights into Ohio's vibrant landscape. HERE Cleveland HERE Dayton
