Visalia Construction CEO Charged with $4 Million COVID-19 Relief Fraud
VISALIA, CA - The CEO of a Visalia-based construction company has been arrested and charged with fraudulently obtaining over $4 million in COVID-19 relief funds, announced U.S. Attorney Eric Grant today.
Joey Wayne Mackey, 45, of Visalia, allegedly submitted false applications for Paycheck protection Program (PPP) loans in April and June 2020 on behalf of three companies he controls: Forcum-Mackey Construction Inc.(Ivanhoe),JWM Inc. (Visalia), and Mack Aviation LLC (Visalia Municipal Airport). Court documents indicate the applications contained fabricated employee numbers and payroll costs, resulting in the disbursement of $4,082,550 in funds.
Following the loan approvals, Mackey is accused of laundering the funds through fraudulent payroll payments to family members, including his minor children, controlling their bank accounts and subsequently using the money for personal gain. Beginning in October 2020, Mackey allegedly used the fraudulently obtained funds to purchase income-generating real estate, including office parks and apartment complexes, and continued to make similar investments and luxury purchases through at least 2023.
The examination was conducted by the FBI, the Federal Deposit Insurance Corporation Office of Inspector General, and the small Business Governance Office of Inspector General. Assistant U.S. Attorneys Calvin Lee and Kevin Khasigian are prosecuting the case.
If convicted, Mackey faces a maximum sentence of 30 years in prison and a $1 million fine. It is meaningful to note that these are allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt.
This case is part of the california COVID-19 Fraud Enforcement Strike force, a multi-agency team established by the Department of Justice to combat large-scale pandemic relief fraud.
