Two former U.S. Air Force airmen indicted for fraudulent scheme to steal $300,000 in COVID-19 relief funds

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SPOKANE, Wash. — Two former U.S. Air Force airmen have been indicted for allegedly defrauding COVID-19 relief programs out of more than $300,000.

According to a statement from the U.S. Attorney’s Office for the Eastern District of Washington, the men, Taylor Kendall, 26, of Spokane, and Michael Allen, 26, of Gainesville, Georgia, are accused of submitting false applications for both the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program. These programs were created under the CARES Act to provide financial relief to businesses struggling during the pandemic.

Between June 2020 and May 2021, Kendall and Allen allegedly provided false information on their applications, claiming to operate an agricultural business with 10 employees and monthly revenue of $4,625. The applications led to two approved EIDL loans totaling $20,000, as well as three approved PPP loans amounting to more than $61,000, according to the Attorney’s Office.

The indictment also alleges that the men submitted false applications on behalf of others, instructing recipients to return part of the funds to them. In total, Kendall and Allen are accused of defrauding the government of at least $80,000 in EIDL advances and $269,900 in PPP loans.

According to the Attorney’s Office, the case also involves three other former airmen—Julius Dixon, Roderick Smith, and Richard Rosales—who have entered into agreements with the government as part of the ongoing investigation.

“These programs were designed to support struggling businesses, but individuals like Kendall and Allen abused them, preventing legitimate businesses from getting the help they needed,” U.S. Attorney Vanessa Waldref said.

Kendall and Allen face up to 30 years in federal prison if convicted.


 

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