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Hampton man sentenced for COVID-19 loan fraud

According to the Dept. of Justice, the man sought more than $100,000 in loans and got around $35,000.
Credit: New Africa - stock.adobe.com

HAMPTON, Va. — A Hampton man was sentenced to 27 months in prison for falsely applying for loans intended for COVID-19 relief to small businesses, according to the Dept. of Justice.

According to a press release from the DOJ, 44-year-old Marlon McKnight falsely applied for four loans administered by the Small Business Administration in August 2020 and January and February 2021.

McKnight reportedly used false information, including false business names, income, and employee information, as well as a false tax return. The DOJ said McKnight sought more than $100,000 in loans and got around $35,000.

According to the DOJ, this isn't McKnight's first scheme. McKnight, his wife, and several others reportedly stole identities and victimized banks. McKnight was sentenced to 30 months for this scheme and was ordered to pay $100,000 in restitution. 

In addition to the 27-month sentence, McKnight was sentenced to an extra four months for his violation of supervised release from his prior case.

 

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