United States v. John N. Kohnen III — Plea Agreement, Western District of Kentucky (Document 12)

Summary

Plea agreement in United States v. John N. Kohnen III, Criminal No. 1:26-cr-45-GNS, in the U.S. District Court for the Western District of Kentucky, Document 12, filed September 1, 2026. Kohnen agrees to waive indictment and plead guilty to Counts 1 through 3 of a felony Information charging violations of Title 18, United States Code, Section 1343. The stated factual basis concerns Economic Injury Disaster Loan and Paycheck Protection Program applications for Metro Mechanical LLC, obtaining a total of $92,300. The parties stipulate to restitution of $101,452.93, payable to the Small Business Administration, and the agreement lists a combined maximum fine of $3,000,000.

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“United States v. John N. Kohnen III — Plea Agreement, Western District of Kentucky (Document 12).” Original at ecf.kywd.uscourts.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/plea-agreement-usa-v-kohnen-dkt-12-w-d-ky-093ce717d7/, SHA-256 0dd0c006f2424e97e326e444d3019e9c2621d200c79e5306d5683107005c1064.

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Case 1:26-cr-00045-GNS Document 12 Filed 09/01/26 Page 1 of 10 PageID #: 41

JAMES J. VILT, JR. - CLERK

SEP -1 2026
UNITED STATES DISTRICT COURT
WESTERN DISTRICT OF KENTUCKY u"3:.
7T BOWLING GREEN ^ ^^ WEST'N. DIST. KENTUCKY

UNITED STATES OF AMERICA PLAINTIFF

v. CRIMINAL NO. 1:26-cr-45-GNS

JOHN N. KOHNEN III DEFENDANT

PLEA AGREEMENT

Pursuant to Rule 1 l(c)(l)(B) of the Federal Rules of Criminal Procedure, the United

States of America, by Kyle G. Bumgarner, United States Attorney for the Western District of

Kentucky, and defendant, John N. Kohnen III, and his attorney, Alan Simpson, have agreed upon

the following:

1. Defendant agrees to waive Indictment by the grand jury and to plead guilty to a

felony Information which will be filed against defendant by the United States Attorney for the

Western District of Kentucky. That information will charge defendant with violations of Title

18, United States Code, Section 1343.

2. Defendant has read the charges against him contained in the Information, and

those charges have been fully explained to him by his attorney. Defendant fully understands the

nature and elements of the crimes with which he has been charged.

3. Defendant will enter a voluntary plea of guilty to Counts 1 through 3 in this case.

Defendant will plead guilty because he is in fact guilty of the charges. The parties agree to the

following factual basis for this plea:

The defendant, John N. Kohnen III controlled the entity Metro Mechanical
LLC dba Ridgetop Mechanical Contractors ("Metro Mechanical"). Beginning in or
about March 2020 and continuing through in or about May 2021, the defendant
Case 1:26-cr-00045-GNS Document 12 Filed 09/01/26 Page 2 of 10 PageID #: 42

engaged in a scheme to submit or cause to be submitted an Economic Injury
Disaster Loan (EIDL) application and a Paycheck Protection Program (PPP) loan
application on behalf of Metro Mechanical, obtaining a total of $92,300.

The defendant knowingly electronically signed and submitted an EIDL
application, requesting an advance, that contained materially false statements
regarding the entity's number of employees, gross revenue, and cost of goods sold.
Further, the defendant knowingly electronically signed and submitted a PPP
application to Financial Institution #1 that contained materially false statements
regarding the entity's number of employees and payroll expenses paid. The
defendant knowingly electronically signed and submitted a PPP forgiveness
application to Financial Institution #1 that contained materially false statements
regarding the entities number of employees and how the defendant used the PPP
funds. The SBA relied upon the statements in the EIDL to determine the eligibility
of the entity for the EIDL advance and loan. Financial Institution #1 relied on the
statements in the PPP application to determine the eligibility of the entity for a PPP
loan. The EIDL advance and PPP funds were used for the defendant's personal
benefit.

The submission of the EIDL, PPP, and PPP forgiveness applications each
created a wire communication in interstate commerce from inside the Western
District of Kentucky to outside of Kentucky.

4. Defendant understands that the charges to which he will plead guilty carry a

combined maximum term of imprisonment of 90 years, a combined maximum fine of

$3,000,000, and a five-year term of supervised release. Defendant understands that an additional

term of imprisonment may be ordered if the terms of the supervised release are violated, as

explained in 18 U.S.C. § 3583.

5. Defendant recognizes that pleading guilty may have consequences with respect to

his immigration status if he is not a citizen of the United States. Under federal law, a broad range

of crimes are removable offenses, which may include the offense to which Defendant is pleading

guilty. In addition, if he is a naturalized citizen, Defendant acknowledges that certain convictions,

which may include Defendant's conviction, may expose him to denaturalization under federal

law. Because removal, denaturalization, and other immigration consequences are handled in

separate proceedings, Defendant understands that no one, including his attorney or the U.S. District
Case 1:26-cr-00045-GNS Document 12 Filed 09/01/26 Page 3 of 10 PageID #: 43

Court, can predict with certainty how his conviction may affect his immigration, naturalization, or

citizenship status. Defendant agrees to plead guilty with a full understanding that this guilty plea

may lead to adverse immigration consequences, including denaturalization and possible automatic

removal from the United States.

6. Defendant understands that if a term of imprisonment of more than one year is

imposed, the Sentencing Guidelines require a term of supervised release and that he will then be

subject to certain conditions ofrelease. §§5D1.1, 5D1.2, 5D1.3.

7. Defendant understands that by pleading guilty, he surrenders certain rights set

forth below. Defendant's attorney has explained those rights to him and the consequences of his

waiver of those rights, including the following:

A. If defendant persists in a plea of not guilty to the charges against

him, he has the right to a public and speedy trial. The trial could either be a jury

trial or a trial by the judge sitting without a jury. If there is a jury trial, the jury

would have to agree unanimously before it could return a verdict of either guilty

or not guilty. The jury would be instructed that defendant is presumed innocent

and that it could not convict him unless, after hearing all the evidence, it was

persuaded of defendant's guilt beyond a reasonable doubt.

B. At a trial, whether by a jury or a judge, the United States would be

required to present its witnesses and other evidence against defendant. Defendant

would be able to confront those government witnesses and his attorney would be

able to cross-examine them. In turn, defendant could present witnesses and other

evidence on his own behalf. If the witnesses for defendant would not appear
Case 1:26-cr-00045-GNS Document 12 Filed 09/01/26 Page 4 of 10 PageID #: 44

voluntarily, he could require their attendance through the subpoena power of the

Court.

C. At a trial, defendant would have a privilege against self-

incrimination and he could decline to testify, without any inference of guilt being

drawn from his refusal to testify. If defendant desired to do so, he could testify in

his own behalf.

8. Defendant understands that the United States Attorney's Office has an obligation

to fully apprise the District Court and the United States Probation Office of all facts pertinent to

the sentencing process, and to respond to all legal or factual inquiries that might arise either

before, during, or after sentencing. Defendant admits all acts and essential elements of the

Information Counts to which he pleads guilty.

9. Defendant agrees that the amount of restitution ordered by the Court shall include

Defendant's total offense conduct, and is not limited to the counts of conviction. The parties

agree and stipulate that Defendant shall pay restitution in the amount of $101,452.93. The

parties agree that the restitution shall be ordered due and payable on the date of sentencing.

Defendant agrees that any payment schedule imposed by the Court is without prejudice to the

United States to take all actions available to it to collect the full amount of the restitution at any

time. Restitution payments shall be made payable to the U.S. District Court Clerk at Gene

Snyder Courthouse, 601 W. Broadway, Louisville, KY 40202. The restitution shall be paid to or

on behalf of the following victim(s):

Victim Amount

Small Business Administration $101,452.93
Case 1:26-cr-00045-GNS Document 12 Filed 09/01/26 Page 5 of 10 PageID #: 45

Defendant agrees that not later than 45 days from entry of the Plea Agreement, Defendant

shall provide to the United States, under penalty of perjury, a financial disclosure form listing all

Defendant's assets/financial interests. Defendant authorizes the United States to run credit

bureau reports prior to sentencing, and Defendant will sign releases authorizing the United States

to obtain Defendant's financial records. Defendant understands that these assets and financial

interests include all assets and financial interests in which Defendant has an interest, direct or

indirect, whether held in Defendant's own name or in the name of another, in any property, real

or personal. Defendant shall also identify all assets valued at more than $5,000 which have been

transferred to third parties since the date of the first offense, including the location of the assets

and the identity of the third party(ies). Defendant agrees that the United States may share the

contents of the reports and financial disclosures with the Court and U.S. Probation.

Defendant agrees to submit to a deposition in aid of collection at times and places that the

United States directs. If the Defendant has a financial advisor or accountant, Defendant agrees,

at his expense, to make them available to aid the United States in determining Defendant's net

worth. Defendant authorizes the United States to file notice ofLis Pendens prior to judgment on

any real property Defendant owns either individually or jointly. Defendant agrees to his name

and debt being added to the Treasury Offset Program.

Upon execution of the Plea Agreement, Defendant agrees not to transfer, sell, or secrete

any of Defendant's property, real or personal, held jointly, individually or by nominee/third

party, valued at $5,000 or more without first advising the United States not less than 10 days

before the proposed sale or transfer. Defendant agrees that failure to comply with any of the

provisions of this Agreement constitutes a material breach of the Plea Agreement and Defendant

agrees that the United States is relieved of its obligations under this Agreement and/or may not
Case 1:26-cr-00045-GNS Document 12 Filed 09/01/26 Page 6 of 10 PageID #: 46

move the Court pursuant to U.S.S.G. § 3E1 .l(b) to reduce the offense level by one additional

level, and may in its discretion argue to the Court that the Defendant should not receive a two-

level reduction for acceptance of responsibility pursuant to U.S.S.G. § 3E1 .l(a) However, the

Defendant may not withdraw his guilty plea because of his breach. The defendant further

understands that he may be responsible for a fine, costs of prosecution, costs of incarceration and

supervision which may be required.

10. Defendant acknowledges liability for the special assessment mandated by 18

U.S.C. § 3013 and will pay the assessment in the amount of $300 to the United States District

Court Clerk's Office by the date of sentencing.

11. At the time of sentencing, the United States will

-recommend a sentence of imprisonment at the lowest end of the
applicable Guideline Range, but not less than any mandatory
minimum term of imprisonment required by law.

-recommend a fine at the lowest end of the applicable Guideline
Range, to be due and payable on the date of sentencing.'

-recommend a reduction of 2 levels below the otherwise applicable
Guideline for "acceptance of responsibility" as provided by
§3El.l(a) is appropriate, and recommend a reduction of one
additional level if the offense level is 16 or higher, as provided by
§3El.l(b), provided the defendant does not engage in future
conduct which violates any federal or state law, violates a
condition of bond, constitutes obstruction of justice, or otherwise
demonstrates a lack of acceptance of responsibility. Should such
conduct occur and the United States, therefore, opposes the
reduction for acceptance, this plea agreement remains binding and
the defendant will not be allowed to withdraw his plea

12. Both parties have independently reviewed the Sentencing Guidelines applicable in

this case.

' The defendant acknowledges that he has read the Notice and Penalty Pages attached to the Information, and that he
understands the interest and penalty provisions applicable to the fine imposed and included in the Judgment entered
by the Court, said Notice and Penalty Pages are incorporated herein by reference.
Case 1:26-cr-00045-GNS Document 12 Filed 09/01/26 Page 7 of 10 PageID #: 47

A. The Criminal History of defendant shall be determined upon

completion of the presentence investigation, pursuant to Fed. R. Crim. P.

32(c). Both parties reserve the right to object to the USSG §4A1.1

calculation of defendant's criminal history. The parties agree to not seek a

departure from the Criminal History Category pursuant to §4A1.3.

B. The foregoing statements of applicability of sections of the Sentencing

Guidelines and the statement of facts are not binding upon the Court. The

defendant understands the Court will independently calculate the Guidelines at

sentencing and defendant may not withdraw the plea of guilty solely because the

Court does not agree with either the statement of facts or Sentencing Guideline

application.

13. Defendant agrees to the following waivers of appellate and post-conviction rights:

A. The Defendant is aware of his right to appeal his conviction and that 18
U.S.C. § 3742 affords a defendant the right to appeal the sentence
imposed. Unless based on claims of ineffective assistance of counsel or
prosecutorial misconduct, the Defendant knowingly and voluntarily waives
the right to directly appeal his conviction and the resulting sentence pursuant
to Fed. R. App. P. 4(b) and 18 U.S.C. § 3742.

B. The Defendant is aware of his right to contest or collaterally attack his
conviction and the resulting sentence under 28 U.S.C. § 2255 or
otherwise. Unless based on claims of ineffective assistance of counsel or
prosecutorial misconduct, Defendant knowingly and voluntarily waives any
collateral attack argument; and

C. The defendant knowingly and voluntarily agrees to limit any motion for
compassionate release for extraordinary and compelling reasons, pursuant to
18 U.S.C. §3582(c)(l)(A)(i), that the defendant may file in the future to the
grounds listed in USSG §lB1.13(b)(l)-(5). The defendant biowingly and
voluntarily waives the option to move for compassionate release based on any
non-retroactive change in the law, including as provided for USSG
§lB1.13(b)(6) ("Unusually Long Sentence").
Case 1:26-cr-00045-GNS Document 12 Filed 09/01/26 Page 8 of 10 PageID #: 48

14. Defendant waives and agrees to waive any rights under the Speedy Trial Act and

understands and agrees that sentencing may be delayed until the cooperation phase has been

completed and title to all assets has fully vested in the United States. The reason for such waiver

is so that at sentencing the Court will have the benefit of all relevant information.

15. Defendant agrees not to pursue or initiate any civil claims or suits against the

United States of America, its agencies or employees, whether or not presently known to

defendant, arising out of the investigation or prosecution of the offenses covered by this

Agreement.

16. The defendant hereby waives all rights, whether asserted directly or by a

representative, to request or receive from any department or agency of the United States any

records pertaining to the investigation or prosecution of this case, including without limitation

any records that may be sought under the Freedom of Information Act, 5 U.S.C. § 552, or the

Privacy Act of 1974, 5 U.S.C. § 552a.

17. Defendant agrees to interpose no objection to the United States transferring

evidence or providing information concerning defendant and this offense, to other state and

federal agencies or other organizations, including, but not limited to the Internal Revenue

Service, other law enforcement agencies, and any licensing and regulatory bodies, or to the entry

of an order under Fed. R. Crim. P. 6(e) authorizing transfer to the Examination Division of the

Internal Revenue Service of defendant's documents, or documents of third persons, in possession

of the Grand Jury, the United States Attorney, or the Criminal Investigation Division of the

Internal Revenue Service. Defendant further agrees to the entry of an order under Fed. R. Crim.

P. 6(e) authorizing the use of documents in possession of the Grand Jury to be used during the

defendant's deposition as contemplated in paragraph 9 of this Agreement.
Case 1:26-cr-00045-GNS Document 12 Filed 09/01/26 Page 9 of 10 PageID #: 49

18. Defendant agrees to forfeit and abandon any right to any and all evidence and

property seized during the course of this investigation (including but not limited to any item

subject to forfeiture), and waives any right to seek the return of any property pursuant to Fed. R.

Crim. P. 41 or otherwise. Defendant understands and agrees that items seized during the course

of this investigation will be destroyed or otherwise disposed of by the seizing law enforcement

agency.

19. The Defendant understands and agrees that, consistent with the provisions of 18

U.S.C. § 3143, following the change of plea the defendant may be detained pending sentencing.

20. It is understood that pursuant to Fed. R. Crim. P. 1 l(c)(l)(B), the

recommendations of the United States are not binding on the Court. In other words, the Court is

not bound by the sentencing recommendation and defendant will have no right to withdraw his

guilty plea if the Court decides not to accept the sentencing recommendation set forth in this

Agreement.

21. Defendant agrees that the disposition provided for within this Agreement is fair,

taking into account all aggravating and mitigating factors. Defendant states that he has informed

the United States Attorney's Office and the Probation Officer, either directly or through his

attorney, of all mitigating factors. Defendant will not oppose imposition of a sentence

incorporating the disposition provided for within this Agreement, nor argue for any other

sentence. If Defendant argues for any sentence other than the one to which he has agreed, he is

in breach of this Agreement. Defendant agrees that the remedy for this breach is that the United

States is relieved of its obligations under this Agreement, but Defendant may not withdraw his

guilty plea because of his breach.
Case 1:26-cr-00045-GNS Document 12 Filed 09/01/26 Page 10 of 10 PageID #: 50

22. This document and the supplemental plea agreement state the complete and only

Plea Agreements between the United States Attorney for the Western District of Kentucky and

defendant in this case, and are binding only on the parties to this Agreement, supersedes all prior

understandings, if any, whether written or oral, and cannot be modified other than in writing that

are signed by all parties or on the record in Court. No other promises or inducements have been

or will be made to defendant in connection with this case, nor have any predictions or threats

been made in connection with this plea.

AGREED:

KYLE G. BUMGARNER
United States Attorney

By:
Fc'or ^^1-Z(/

Nicole S. Elver Date
Assistant United States Attorney

I have read this Agreement and carefully reviewed every part of it with my attorney. I
fully und^rst^nd it and I voluntarily agree to it.

//^
John N. Kohnen III ^ Date
Defendant

I am the defendant's counsel. I have carefully reviewed every part of this Agreement
with the defendant. To my knowledge my client's decision to enter into this Agreement is an
and voluntary one.

7,' I ^
Alan Simpsi; Date
Counsel for De

KGB:NSE

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