News Summary
Joey Wayne Mackey, a Visalia construction CEO, was arrested for allegedly obtaining over $4 million in COVID-19 relief through false Paycheck Protection Program applications. Investigations revealed inflated employee counts and payroll costs across three businesses, with funds reportedly laundered through fraudulent payroll payments. If convicted, Mackey faces a potential 30-year prison sentence and a $1 million fine. This case highlights ongoing concerns of fraud related to COVID-19 relief funds and the importance of regulatory enforcement.
Visalia – Joey Wayne Mackey, a 45-year-old CEO of a construction company based in Visalia, was arrested on Friday following allegations that he fraudulently secured over $4 million in COVID-19 relief funds. The arrest was made under a federal complaint announced by U.S. Attorney Eric Grant.
Mackey is charged with submitting false applications for the Paycheck Protection Program (PPP) between April and June 2020. The fraudulent applications were connected to three businesses: Forcum-Mackey Construction Inc., JWM Inc., and Mack Aviation LLC.
According to prosecutors, the PPP loan applications submitted by Mackey falsely inflated the number of employees and payroll costs, leading to a bank disbursing a total of $4,082,550 in taxpayer-backed funds. Following the disbursal, Mackey is alleged to have laundered the funds through purportedly fraudulent payroll payments made to family members, including minor children.
Investigations revealed that after the fraudulent payroll payments, Mackey withdrew significant amounts of cash to invest in various assets, including office parks and luxury apartments. Reports indicate that he continued to make high-end real estate acquisitions and luxury purchases funded by the loans through at least 2023.
Details of the Fraudulent Activity
The investigation into Mackey’s activities involved several agencies, including the FBI, the FDIC Office of Inspector General, and the SBA Office of Inspector General. The specifics of the fraud detail a manipulative pattern whereby Mackey misrepresented crucial information on his applications to qualify for substantial funds under the COVID-19 relief program.
Consequences of the Allegations
If convicted, Mackey faces dire repercussions, including a potential prison sentence of up to 30 years and a fine of $1 million. These severe penalties reflect the serious nature of the allegations regarding COVID-19 relief fraud, which has been a growing concern for financial regulatory bodies and law enforcement agencies across the United States.
Context on the Paycheck Protection Program
The Paycheck Protection Program was established as part of the federal government’s response to the economic fallout caused by the COVID-19 pandemic. It aimed to provide small businesses with funds to keep their workforce employed during the crisis. However, the program has also seen numerous cases of fraud where individuals exploited the emergency financial assistance for personal gain.
As investigations into COVID-19 relief fund misuse continue, this case against Joey Wayne Mackey exemplifies the legal repercussions that can arise from fraudulent activities associated with government relief efforts. Authorities have emphasized the significance of monitoring and enforcing regulations around such funds to prevent fraudulent claims and ensure that assistance reaches those who genuinely need it.
In the coming weeks, further legal proceedings will determine the outcome of this case. The implications extend beyond Mackey, as they will impact how similar cases are handled in the future and reinforce the need for integrity in government support programs designed to help American businesses weather economic challenges.
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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
Author: STAFF HERE NEW YORK WRITER
NEW YORK STAFF WRITER The NEW YORK STAFF WRITER represents the experienced team at HERENewYork.com, your go-to source for actionable local news and information in New York, the five boroughs, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as New York Fashion Week, Macy's Thanksgiving Day Parade, and Tribeca Film Festival. Our coverage extends to key organizations like the Greater New York Chamber of Commerce and United Way of New York, plus leading businesses in finance and media that power the local economy such as JPMorgan Chase, Goldman Sachs, and Bloomberg. As part of the broader HERE network, including HEREBuffalo.com, we provide comprehensive, credible insights into New York's dynamic landscape.
