United States Attorney’s Office for the Southern District of West Virginia Joins DOJ Fraud Division, SBA, and SBA OIG in Surge Takedown Exceeding $245 Million in COVID-era Loan Fraud

Press release — United States Attorney’s Office for the Southern District of West Virginia Joins DOJ Fraud Division, SBA, and SBA OIG in Surge Takedown Exceeding $245 Million in COVID-era Loan Fraud, dated 2026-09-14, issued by U.S. Attorney’s Office, Southern District of West Virginia.

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{"metadata":{"responseInfo":{"status":200},"resultset":{"count":"1","pagesize":20,"page":0},"executionTime":0.006053924560546875},"results":[{"attachment":"","body":"CHARLESTON, W.Va. \u2013 United States Attorney Moore Capito announced a guilty plea today as part of a nationwide enforcement action led by the Justice Department\u2019s National Fraud Enforcement Division, the Small Business Administration, and the SBA Office of Inspector General targeting fraud in the SBA\u2019s Paycheck Protection Program (PPP). The Southern District of West Virginia was a key participant in this surge effort.From June 12 to September 1, 2026, 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.\u201cThe whole-of-government crackdown on fraud is delivering decisive results, and the SBA surge demonstrates that our commitment is only strengthening,\u201d Capito said. \u201cOur office has secured 33 criminal convictions for COVID-19 fraud and more than $5.1 million in restitution. We will continue to root out pandemic-era fraud wherever it exists, hold every offender accountable, and bring those responsible to justice.\u201d\u201cPandemic loan relief was meant to keep American small businesses alive during government lockdowns \u2014 not line the pockets of fraudsters,\u201d said Attorney General Todd Blanche. \u201cThe defendants charged during our summer surge allegedly fabricated businesses, submitted false payroll and revenue claims, stole identities, and concealed foreign ties on their applications \u2014 but they will now be prosecuted to the fullest extent of the law.\u201d\u201cThis summer surge shows what is possible when dedicated public servants across the country work together with a single purpose,\u201d said Assistant Attorney General Colin M. McDonald of the National Fraud Enforcement Division. \u201cOur 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\u2014standing shoulder to shoulder with our partners\u2014to identify fraud, pursue those responsible, and restore confidence in the programs meant to help American small businesses thrive.\u201d\u201cToday\u2019s 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\u2019re putting fraudsters on notice: the federal government\u0026nbsp;will no longer turn a blind eye to those who stole from taxpayers and exploited programs designed to sustain small businesses during the pandemic,\u201d said SBA Administrator Kelly Loeffler. \u201cWith demand letters going out to suspected fraudsters, we\u2019re 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.\u201d\u201cOperation No Doze brings a focused and coordinated approach to pursuing fraud in SBA\u2019s pandemic relief programs,\u201d said SBA Inspector General William Kirk. \u201cBy 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.\u201dCapito announced that Nicholas Kind, 30, of Charleston, pleaded guilty on August 3, 2026, to theft of public money, property, or records. According to court documents and statements made in court, on March 1, 2021, a PPP loan application was submitted on Kind\u2019s behalf. As part of his guilty plea, Kind admitted that the PPP loan application falsely stated that he had a business, that it was eligible for PPP funds, and that his gross income was $106,000 for the 2019 tax year. On March 2, 2021, the PPP loan application was approved and $20,000 in loan proceeds was deposited in Kind\u2019s personal bank account. Kind admitted that he knew there was no legitimate reason for him to receive the $20,000 in PPP loan proceeds, and that he converted the money for his personal use. Kind is scheduled to be sentenced on November 17, 2026, and faces a maximum penalty of 10 years in prison, up to three years of supervised release, and a fine of up to $250,000. Kind also owes $20,000 in restitution.This case was investigated by the West Virginia State Police, the U.S. Department of Homeland Security-Homeland Security Investigations (HSI), and the National Aeronautics and Space Administration Office of Inspector General (NASA OIG).\u201cWe are proud to be part of this collaboration with the Department of Justice, SBA OIG, and our law enforcement partners,\u201d said Robert Steinau, Senior Official at the NASA Office of Inspector General. \u201cThis summer surge underscores our unwavering commitment to tracking down the bad actors who exploited vital COVID-19 relief programs for personal gain. Holding these fraudsters accountable is paramount; every stolen PPP loan represents taxpayer money taken directly from the honest Americans it was meant to help.\u201dNASA OIG is an active member of the Pandemic Response Accountability Committee (PRAC) Fraud Task Force. The PRAC was established to promote transparency and facilitate coordinated oversight of the federal government\u2019s COVID-19 pandemic response. The PRAC\u2019s 20 member Inspectors General identify major risks that cross program and agency boundaries to detect fraud, waste, abuse, and mismanagement in the more than $5 trillion in COVID-19 spending, including spending via the Paycheck Protection Program (PPP), and Economic Injury Disaster Loan (EIDL) program. This case was also supported by the PRAC\u2019s Pandemic Analytics Center of Excellence, which applies the latest advances in analytic and forensic technologies to help OIGs and law enforcement pursue data-driven pandemic relief fraud investigations.\u0026nbsp;On April 7, 2026, the Department of Justice announced the creation of the National Fraud Enforcement Division (\u201cFraud Division\u201d). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department\u2019s work to combat fraud supports President Trump\u2019s 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.A copy of this press release is located on the website of the\u0026nbsp;U.S. Attorney\u2019s Office\u0026nbsp;for the Southern District of West Virginia.\u0026nbsp;Related court documents and information can be found on\u0026nbsp;PACER\u0026nbsp;by searching for Case No. 2:26-cr-81.###\u0026nbsp;","changed":"\u003Ctime datetime=\u00222026-09-14T17:23:33-04:00\u0022\u003E1789421013\u003C\/time\u003E\n","component":[{"uuid":"d50b78df-a13b-4519-9b32-00aae6e21409","name":"National Fraud Enforcement Division"},{"uuid":"6decd6a7-23cb-4fef-b50c-791f6604191f","name":"USAO - West Virginia, Southern"}],"created":"\u003Ctime datetime=\u00222026-09-14T16:32:36-04:00\u0022\u003E1789417956\u003C\/time\u003E\n","date":"1789387200","image":"","number":"","teaser":"","title":"United States Attorney\u2019s Office for the Southern District of West Virginia Joins DOJ Fraud Division, SBA, and SBA OIG in Surge Takedown Exceeding $245 Million in COVID-era Loan Fraud ","topic":[{"uuid":"32b4d47b-2142-420c-9aae-28f7bf2c86d4","name":"Fraud"},{"uuid":"6827a162-b783-4ffa-a6c2-596fc9f07e39","name":"COVID-Related Fraud"}],"url":"https:\/\/www.justice.gov\/usao-sdwv\/pr\/united-states-attorneys-office-southern-district-west-virginia-joins-doj-fraud","uuid":"f998a3b1-b8cd-4dd5-8a0f-b6c354953e5d"}]}

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