News Summary
Joey Wayne Mackey, the CEO of a Visalia construction company, has been arrested on federal charges for allegedly fraudulently obtaining over $4 million in COVID-19 relief funds. Mackey is accused of inflating employee numbers and payroll costs in loan applications for three businesses to secure larger loans. The investigation has revealed that he misused the funds for personal expenses, including real estate acquisitions. The case underscores the ongoing federal efforts to combat fraud related to pandemic relief programs.
Visalia: Construction CEO Arrested for Alleged COVID-19 Relief Fraud
The city of Visalia witnessed a significant legal development when Joey Wayne Mackey, aged 45, the CEO of a local construction company, was arrested on federal charges on Friday. Mackey faces allegations of fraudulently obtaining more than $4 million in COVID-19 relief funds through false applications. The case has drawn attention to potential misuse of government aid programs meant to support businesses and workers during the pandemic.
Details of the Alleged Fraudulent Activities
According to authorities, Mackey submitted fraudulent Paycheck Protection Program (PPP) loan applications during a critical period between April and June 2020. These applications were submitted for three separate business entities: Forcum-Mackey Construction Inc., JWM Inc., and Mack Aviation LLC. Prosecutors allege that Mackey deliberately inflated the number of employees and the payroll costs claimed in these applications to secure larger loan amounts under the COVID-19 relief initiative.
Based on these false claims, a bank disbursed a total of approximately $4,082,550 in taxpayer-backed funds. The funds were intended to aid struggling businesses and preserve employment during the economic downturn caused by the pandemic. However, authorities say Mackey used the proceeds for personal and family purposes, rather than for the intended business uses.
Use and Laundering of Funds
Investigators allege that Mackey laundered the ill-gotten funds through fraudulent payroll payments made to family members, including minor children. These payments were designed to create the appearance of legitimate employment and payroll expenses, thereby further inflating the payroll figures submitted with their loan applications.
Following the receipt of funds, Mackey is accused of withdrawing large sums to purchase office parks, luxury apartments, and other investments. Records indicate that he continued to make real estate acquisitions and luxury purchases through at least 2023, financed in part by the proceeds from the fraudulent loans. The pattern suggests a deliberate scheme to convert COVID-19 relief funds into personal assets.
Investigation and Legal Proceedings
The case is being actively investigated by multiple federal agencies, including the Federal Bureau of Investigation (FBI), the Federal Deposit Insurance Corporation (FDIC) Office of Inspector General, and the Small Business Administration (SBA) Office of Inspector General. These agencies are working together to establish the full extent of the fraud and related financial misconduct.
Potential Penalties
If convicted, Mackey faces significant penalties under federal law. Prosecutors have indicated that he could be sentenced to up to 30 years in prison and face fines of up to $1 million. The case underscores the federal government’s ongoing efforts to combat fraud schemes related to pandemic relief funds and ensure accountability.
Background Context
The COVID-19 pandemic led to unprecedented economic challenges, prompting the federal government to introduce aid programs such as the Paycheck Protection Program. These programs aimed to provide rapid financial assistance to small businesses and safeguard employment across the country. However, the urgent deployment of relief funds also created opportunities for misuse and allegations of fraud have surfaced in various jurisdictions, including this recent case in Visalia.
The arrest of Mackey serves as a reminder of the stringent legal consequences for those who attempt to exploit federal relief efforts. Federal authorities continue to monitor and investigate claims of misuse, aiming to deter future fraudulent activities and uphold the integrity of pandemic assistance programs.
Deeper Dive: News & Info About This Topic
HERE Resources
Washington, DC Balances Celebration Amid Safety Concerns
New Judge Appointed to Oversee High-Profile Federal Case
Doctor Charged with Opioid Distribution and Fraud
Howard University Students Face Financial Struggles
Federal Appeals Court Reinstates Doctor’s Conviction in COVID-19 Fraud
Controversy Surrounds Appointment of Top Vaccine Regulator
Federal Charges Against Utah Doctor Dismissed
Charges Dismissed Against Utah Doctor in Vaccine Fraud Case
Department of Justice Dismisses Vaccine Fraud Charges Against Doctor
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 WASHINGTON DC
WASHINGTON DC STAFF WRITER The WASHINGTON DC STAFF WRITER represents the experienced team at HEREWashingtonDC.com, your go-to source for actionable local news and information in Washington, DC, 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 regional 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 the National Cherry Blossom Festival, Kennedy Center Honors, and the Washington Auto Show. Our coverage extends to key organizations like the Greater Washington Board of Trade and Destination DC, plus leading businesses in government contracting and technology that power the local economy such as Lockheed Martin and Amazon. As part of the broader HERE network, we provide comprehensive, credible insights into the dynamic landscape of the Washington metropolitan area.
