Hampton Man Sentenced for COVID-19 Loan Fraud While in BOP Halfway House

Summary

A July 7, 2022 press release from the U.S. Attorney's Office for the Eastern District of Virginia announcing that Marlon McKnight, 44, of Hampton was sentenced by U.S. District Judge Arenda Wright Allen to 27 months in prison for falsely applying for COVID-19 relief loans, plus four months consecutive for violating supervised release in a prior case. According to court documents cited in the release, in August 2020 and January and February 2021 McKnight applied for three EIDL loans and one PPP loan using false business names, income, employee information and a false tax return, seeking over $100,000 and obtaining approximately $35,000. The release states that he submitted some applications from a halfway house, after a prior 30-month sentence for a federal fraud scheme. It gives the case number as 4:21-cr-71.

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Full text

NEWPORT NEWS, Va. – A Hampton man was sentenced today to 27 months in prison for falsely applying for loans intended to grant COVID-19 relief to small businesses.
According to court documents, in August 2020 and January and February 2021, Marlon McKnight, 44, falsely applied for four loans administered by the Small Business Administration. He applied for three Economic Injury Disaster Loans and one Paycheck Protection Program loan using false information, including false business names, income, and employee information, as well as a false tax return. McKnight sought over $100,000 in loans and obtained approximately $35,000. McKnight used the $35,000 obtained to pay his personal expenses, contrary to the purposes for these loans. McKnight submitted certain false applications from a halfway house and others after just being released from the Bureau of Prisons.
McKnight had been incarcerated because this instance of fraud came directly on the heels of a previous federal fraud scheme wherein McKnight, his wife, and several others victimized banks and stole individual identities. McKnight had been sentenced to 30 months for that scheme and ordered to pay nearly $100,000 in restitution. In addition to the 27-month sentence, McKnight was sentenced to an additional four months of consecutive incarceration for his violation of supervised release from his prior case.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; and Tira Hayward, Acting Inspector in Charge of the U.S. Postal Inspection Service’s Washington Division, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen.
Assistant U.S. Attorney Brian Samuels prosecuted the case.
This case was investigated under the leadership and coordination of the Newport News Financial Crimes Task Force.
A copy of this press release is located on the website of the
U.S. Attorney’s Office
for the Eastern District of Virginia. Related court documents and information are located on the website of the
District Court
for the Eastern District of Virginia or on
PACER
by searching for Case No. 4:21-cr-71.

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www.justice.gov