WDKY joins DOJ Fraud Division, SBA, and SBA OIG in surge takedown exceeding $245 million in COVID-era loan fraud

Date: Sept. 14, 2026

Contact: newsroom@ci.irs.gov

Louisville, KY – The United States Attorney’s Office for the Western District of Kentucky today announced an indictment, guilty plea, and a sentencing as part of a nationwide Enforcement action led by the Justice Department’s National Fraud Enforcement Division, the Small Business Administration, and the SBA Office of Inspector General targeting fraud in the SBA’s Paycheck Protection Program (PPP). The Western District of Kentucky was a key participant in this surge effort. 

From June 12 to Sept. 1, federal prosecutors across the country facilitated fraud enforcement actions spanning over 160 criminal defendants, including approximately 80 newly charged defendants, reaching approximately $245 million dollars in intended loss to American taxpayers. 

United States Attorney Kyle Bumgarner stated, “Americans expect and demand their federal programs assist needy recipients rather than line the pockets of fraudsters. We are charged with being good stewards of Americans’ tax dollars. Our office will never sit idly on the sidelines while fraudsters steal from our citizens. We will aggressively investigate and prosecute those fraudsters undermining the viability of important federal programs.”

“Pandemic loan relief was meant to keep American small businesses alive during government lockdowns—not line the pockets of fraudsters,” said Attorney General Todd Blanche. “The defendants charged during our summer surge allegedly fabricated businesses, submitted false payroll and revenue claims, stole identities, and concealed foreign ties on their applications— but they will now be prosecuted to the fullest extent of the law.” 

“This summer surge shows what is possible when dedicated public servants across the country work together with a single purpose,” said Assistant Attorney General Colin M. McDonald of the National Fraud Enforcement Division. “Our mission is clear: protect taxpayer funds, safeguard the integrity of federal relief programs, and deliver justice to those who exploited them. We will remain steadfast every day—standing shoulder-to-shoulder with our partners—to identify fraud, pursue those responsible, and restore confidence in the programs meant to help American small businesses thrive.” 

“Today’s announcement represents the largest-ever action against perpetrators of SBA fraud, with 870,000 suspended borrowers tied to $39 billion in suspected fraudulent PPP and COVID EIDL activity. In partnership with Vice President Vance and the White House Task Force to Eliminate Fraud, we’re putting fraudsters on notice: the federal government will no longer turn a blind eye to those who stole from taxpayers and exploited programs designed to sustain small businesses during the pandemic,” said SBA Administrator Kelly Loeffler. “With demand letters going out to suspected fraudsters, we’re also sending a clear message that they must repay their debts or face Treasury collections and possible federal law enforcement. Under this Administration, the free ride is over. We are restoring accountability, recovering taxpayer dollars, and protecting SBA programs for the legitimate small businesses they were created to serve.” 

“Operation No Doze brings a focused and coordinated approach to pursuing fraud in SBA’s pandemic relief programs,” said SBA Inspector General William Kirk. “By concentrating our investigative resources and working closely with SBA and our law enforcement partners, we are strengthening our ability to identify fraud, recover taxpayer funds, and hold accountable those who exploited programs created to help small businesses in a time of extraordinary need. This initiative makes clear that the passage of time does not diminish our commitment to accountability.” 

In the Western District of Kentucky, U.S. Attorney Kyle Bumgarner announced that four defendants have been charged with, pleaded guilty to, or were sentenced for PPP-related fraud involving approximately $1.3 million in alleged losses. 

According to the indictment, charging documents, and/or court records: 

According to court documents, on July 15, 2026, Travis Brackens was sentenced to 7 years and 10 months incarceration and ordered to pay $592,048.05 in restitution for engaging in a scheme to fraudulently obtain Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) loans, by making fraudulent statements on the applications, either in his own name, through entities he created, or by using stolen identities. Brackens also conspired with Elizabeth Wester and Reginald Turner to file fraudulent PPP applications in their names, to which they were not entitled. Brackens was compensated for filing the loans in the names of Wester and Turner by keeping a portion of the loan proceeds for himself. Each application was fraudulent in that it was for a business that did not exist or over inflated minimal business activity. As a result, Brackens and others obtained PPP loan proceeds to which they were not entitled. This case was investigated by TIGTA and IRS CI.

According to court documents, on Sept. 1, 2026, John N. Kohnen III pleaded guilty to charges related to filing a fraudulent Economic Injury Disaster Loan (EIDL) application and a fraudulent application for Paycheck Protection Program (PPP) loan, resulting in the theft of almost $100,000. According to the Information, between March 30, 2020, and May 5, 2021, Kohnen used the entity Metro Mechanical LLC, d/b/a Ridgetop Mechanical Contractors, a Kentucky Limited Liability Company, to file the applications. In the EIDL application, Kohnen exaggerated the number of employees, gross revenue, and cost of goods sold. In the PPP application, he exaggerated the number of employees and average monthly payroll expenses. The total maximum potential penalties are not more than 90 years’ incarceration, not more than a $3,000,000 fine, or both, and not more than 5 years of supervised release. This case is being investigated by FBI and USPIS. 

On Aug. 12, 2026, a federal grand jury returned an indictment, which charges two individuals, Brandon Curry and Tamala Curry with conspiracy to commit wire fraud, wire fraud, and bank fraud, and charges Brandon Curry with money laundering, all related to fraudulently obtaining COVID-19 financial assistance program funds. According to the Indictment, between March 20 and September 2021, Brandon Curry and Tamala Curry filed at least four fraudulent Economic Injury Disaster Loan (EIDL) applications and two fraudulent applications for Paycheck Protection Program (PPP) loans, resulting in the theft of approximately $700,000. Brandon Curry and Tamala Curry used the entities Curry Electric, C&C Systems, and C&C Network Systems, to file the applications. They submitted the applications for COVID-19 relief funds in the names of all three entities, using different EINs and/or social security numbers, giving the appearance that they were all independent entities, when they were all related and did not operate independently of one another. In the EIDL applications, Brandon Curry and Tamala Curry falsely exaggerated the number of employees, gross revenue, and cost of goods sold. In the PPP application, they exaggerated the number of employees and average monthly payroll expenses. The total maximum potential penalties for Brandon Curry are not more than 190 years’ incarceration, not more than a $6,250,000 fine, or both, and not more than 5 years of supervised release. The total maximum potential penalties for Tamala Curry are not more than 180 years’ incarceration, not more than a $6,000,000 fine, or both, and not more than 5 years of supervised release. This case is being investigated by Department of Homeland Security-OIG, FBI, and USPIS. 

These Western District of Kentucky cases were investigated by the FBI Louisville Field Office, the Treasury Inspector General for Tax Administration (TIGTA) Great Lakes Field Division, the United States Postal Inspection Service Pittsburgh Division, and the Department of Homeland Security Office of Inspector General, Covid Fraud Unit.

On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (“Fraud Division”). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.

IRS-CI is the law enforcement arm of the IRS, responsible for conducting financial crime investigations, including tax fraud, narcotics trafficking, money laundering, public corruption, healthcare fraud, identity theft and more. It is the only federal law enforcement agency with investigative jurisdiction over violations of the Internal Revenue Code. IRS-CI has 16 field offices located across the U.S. and maintains an international presence through attaché posts abroad.