News Summary
Joey Wayne Mackey, a CEO from Visalia, has been arrested for allegedly fraudulently obtaining over $4 million in COVID-19 relief funds. Federal prosecutors revealed he submitted false applications for Paycheck Protection Program loans for his companies, inflating employee numbers and payroll costs. After receiving the funds, he allegedly laundered them through questionable payments to family members, using the money for real estate investments. This case highlights the critical importance of maintaining integrity in federal assistance programs.
Visalia, CA – Joey Wayne Mackey, the 45-year-old CEO of a Visalia construction company, was arrested on a federal complaint on Friday for allegedly fraudulently securing over $4 million in COVID-19 relief funds. The charges were announced by U.S. Attorney Eric Grant, who details the extent of Mackey’s alleged misconduct during the pandemic.
According to federal prosecutors, between April and June 2020, Mackey submitted false applications for Paycheck Protection Program (PPP) loans on behalf of three businesses: Forcum-Mackey Construction Inc., JWM Inc., and Mack Aviation LLC. These applications reportedly included inflated employee numbers and misleading payroll costs. As a result of his fraudulent claims, a bank disbursed a total of $4,082,550 in taxpayer-backed relief funds.
Authorities allege that following the disbursement of these funds, Mackey laundered the money through questionable payroll payments to his family members, which included payments made to his minor children. After diverting the funds in this manner, he subsequently withdrew large sums from the PPP loans to finance real estate acquisitions, purchasing office parks, luxury apartments, and other lucrative investments. Reports indicate that Mackey continued to engage in real estate dealings and luxury purchases funded by the PPP loans up until at least the year 2023.
The investigation into Mackey’s actions was a joint effort by the FBI, the FDIC Office of Inspector General, and the SBA Office of Inspector General, indicating the seriousness of the alleged fraud on a national scale. The PPP was designed to provide critical financial assistance to businesses coping with the economic impact of the COVID-19 pandemic, aiming to avert layoffs and keep employees on payroll. However, Mackey’s alleged abuse of this program highlights significant vulnerabilities in the oversight of such relief initiatives.
If convicted, Mackey could face severe penalties, including up to 30 years in prison and a fine up to $1 million. The potential sentences reflect the federal government’s commitment to prosecuting fraud related to pandemic relief programs, which have been under scrutiny for misuse and fraudulent claims since their inception.
As the investigation proceeds, this case serves as a cautionary tale about the consequences of exploiting federal financial assistance programs. As taxpayer dollars are at stake, officials have emphasized the importance of maintaining integrity in the application process to ensure that aid reaches businesses and workers truly in need.
Mackey’s arrest is part of a broader pattern where federal authorities are actively pursuing cases of fraud associated with COVID-19 relief efforts. Thousands of cases have been examined, revealing that some individuals and businesses attempted to use the crisis as an opportunity for illicit financial gain. This incident underlines the necessity for continued vigilance by law enforcement agencies to protect the integrity of governmental financial assistance programs.
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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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