(WYMT) – A London woman has been sentenced to federal prison for her role in a scheme to fraudulently obtain more than $1 million in COVID-19 relief loans and then launder the proceeds, according to court records.
Nicole Pennington, 50, was sentenced Tuesday to 44 months in prison by U.S. District Judge Claria Horn Boom after pleading guilty to wire fraud and conspiracy to commit money laundering. Prosecutors said the case involved fraudulent applications for Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) loans administered by the Small Business Administration (SBA).
Prosecutors: false applications backed by fake documents
According to Pennington’s plea agreement, from March 2020 through May 2022, she devised a scheme to defraud the government by submitting materially false information on PPP and EIDL applications.
Investigators said Pennington submitted about 30 applications tied to both real and fabricated businesses connected to herself and her husband, Joshua Pennington. The applications were supported with fraudulent tax returns, financial statements, and other records, prosecutors said.
In total, six of the applications were approved, resulting in $1,090,398.35 in fraudulently obtained SBA loan proceeds.
More than $1 million laundered, prosecutors say
After receiving the loan money, Nicole Pennington and Joshua Pennington laundered more than $1 million in criminal proceeds through a series of transactions of $10,000 or more, according to the plea agreement.
Prosecutors said the funds were used for personal expenses, including kitchen renovations, plastic surgery, a Viking River Cruise trip, cash withdrawals, vehicle purchases, and paying off loans and mortgages.
The co-defendant in the case, Joshua Pennington, was previously sentenced to 22 months in prison for his role in the money laundering conspiracy, according to court records.