NEWPORT NEWS, Va. — A man faces charges for fraudulently filling out applications to get funds related to coronavirus disaster relief.
According to the indictment, Joseph Cherry II wanted to fake his way into obtaining disaster-related loan benefits from the United States Small Business Administration (SBA) sponsored Economic Injury Disaster (EIDL) loans and a Paycheck Protection Program (PPP) loan.
These programs are all under the CARES Act that's meant to dole out loans and benefits to business owners affected by the COVID-19 crisis.
Cherry, 39, engaged in this scheme from March 2020 to May 2020, a period in which he was serving a term of federal supervised release. He apparently received more than $190,000 in proceeds in April 2020.
Then, he converted about $140,000 of those proceeds to cash or a cashier's check.
He was charged with wire fraud, theft of government property, false statements to the small business administration, and money laundering.
If he's convicted, he faces between 10 to 30 years in prison on each count, at maximum. However, actual sentences for federal crimes are much lower than the maximum penalties.
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