A Coffee County man, Kyle Waldron, has been sentenced to federal prison and ordered to pay over $1.3 million in restitution for fraudulently obtaining funds intended to assist businesses struggling during the pandemic. U.S. Attorney for the Southern District of Georgia, Jill E. Steinberg, stated, "Kyle Waldron committed brazen fraud and theft from pandemic relief funds." Waldron, 59, of Douglas, Ga., pleaded guilty to money laundering and was sentenced to 15 months in prison by U.S. District Court Judge Lisa Godbey Wood.
According to Steinberg, the Coronavirus Aid, Relief, and Economic Security (CARES) Act, passed by Congress in 2020, provided financial assistance to small businesses affected by the pandemic through programs like the Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL) disbursed by the Small Business Administration (SBA). An investigation revealed that Waldron submitted fraudulent applications on behalf of multiple entities, resulting in the disbursement of more than $1.3 million.
Demetrius Hardeman, Special Agent in Charge of IRS Criminal Investigation, Atlanta Field Office, emphasized that the sentence and restitution serve as a warning to those committing COVID-19 fraud. Similarly, J. Craig Reno, Resident Special Agent in Charge of the U.S. Secret Service Savannah Resident Office, highlighted that Waldron's case should deter others from attempting similar crimes, stating, "This sentence should serve as a warning to potential thieves that they will be caught and prosecuted."
The investigation was conducted by Internal Revenue Service Criminal Investigations and the U.S. Secret Service, with prosecution handled by Assistant U.S. Attorneys Matthew A. Josephson and J. Bishop Ravenel of the Southern District of Georgia. Those with information on COVID-19 fraud are encouraged to report it to the Department of Justice's National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form.