Vonnie McDaniels, 35, of Lexington, has been sentenced to eight years in federal prison for wire fraud and other charges related to misusing COVID-19 relief programs, according to the U.S. Attorney’s Office for the Eastern District of Kentucky.
Evidence presented at trial revealed that McDaniels submitted a false application to the Small Business Administration (SBA) to obtain an Economic Injury Disaster Loan (EIDL) for one of his businesses, fraudulently securing a $100,000 loan. In addition, he submitted three false Paycheck Protection Program (PPP) applications, two of which were approved, resulting in McDaniels obtaining $93,231.
McDaniels misused the SBA loan funds to pay off personal credit cards, clear home equity lines of credit, purchase a property in South Carolina, and cover an unlawfully obtained mortgage. He also submitted a fraudulent application in 2021 for rent relief through the Lexington Fayette Urban County Government’s Housing Stabilization Program (HSP), securing $45,000 in COVID-19 rental assistance by submitting inflated lease amounts and pretending to be his tenants.
McDaniels continued to collect monthly rent payments from his tenants while falsely informing them they did not qualify for the relief program. In addition to his prison sentence, Chief U.S. District Judge Danny Reeves ordered McDaniels to pay $262,017.43 in restitution.
McDaniels is required to serve 85% of his prison sentence.
