London Man Pleads Guilty to Money Laundering Conspiracy Involving COVID Relief Loans
Summary
Joshua Pennington, 50, of London, Kentucky pleaded guilty to conspiracy to commit money laundering of fraudulently obtained Economic Injury Disaster Loans and Payment Protection Loans, the U.S. Attorney's Office for the Eastern District of Kentucky announced on January 22, 2025. According to the plea agreement, co-defendant Nicole Pennington made materially false statements on SBA loan applications, six of which were approved for a total of $1,090,398.35. Between May 2020 and June 10, 2021 Joshua Pennington and the co-defendant laundered over $1,000,000 through transactions over $10,000, using the money to renovate their kitchen, pay for plastic surgery and buy a Viking River Cruise trip and vehicles. Nicole Pennington, 48, was indicted in December 2024 on 16 counts of wire fraud plus conspiracy to commit money laundering and money laundering. Sentencing was set for May 20, 2025.
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Press Release London Man Pleads Guilty to Money Laundering Conspiracy Involving COVID Relief Loans Wednesday, January 22, 2025 For Immediate Release U.S. Attorney's Office, Eastern District of Kentucky LONDON, Ky. – A London man, Joshua Pennington, 50, pleaded guilty on Tuesday, before U.S. Magistrate Judge Hanley Ingram, to conspiracy to commit money laundering of fraudulently obtained Economic Injury Disaster Loans and Payment Protection Loans. His co-defendant, Nicole Pennington, 48, was indicted in December 2024, on 16 counts of wire fraud, one count of conspiracy to commit money laundering, and one count of money laundering. According to Joshua Pennington’s plea agreement, his co-defendant made materially false statements on applications for Small Business Administration (SBA) loans. Six of the loan applications were approved for a total of $1,090,398.35 in fraudulently obtained SBA loan proceeds. Between May 2020 and June 10, 2021, Joshua Pennington and his co-defendant knowingly laundered over $1,000,000 in criminally derived funds, via transactions over $10,000. They used the money to renovate their kitchen, pay for plastic surgery, purchase a Viking River Cruise trip, withdraw cash, purchase vehicles, and pay off loans and mortgages. Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Kelly K. Moening, Special Agent in Charge, Treasury Inspector General for Tax Administration, Great Lakes Field Division; and Karen Wingerd, Special Agent in Charge, IRS-Criminal Investigations, Cincinnati Field Division, jointly announced the sentencing. The investigation was conducted by the Treasury Inspector General for Tax Administration and the IRS-CI. Assistant U.S. Attorney Brittany Dunn-Pirio is prosecuting the case on behalf of the United States. Joshua Pennington is scheduled to be sentenced on May 20, 2025. He faces up to ten years in prison, plus any restitution or fines ordered by the Court. However, any sentence will be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes. On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form. — END — Contact CONTACT: Gabrielle Dudgeon PHONE: (859) 685-4887 E-MAIL: gabrielle.dudgeon@usdoj.gov Updated January 22, 2025 Topic COVID-Related Fraud Component USAO - Kentucky, Eastern
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