Lexington business owner stole COVID relief money, bought ‘luxury goods’ in Vegas
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- Owner of Lexington painting firm pleaded guilty to federal wire fraud and money laundering.
- Obtained $92,700 EIDL and $39,550 PPP loans (total $132,250) via fraud
- Sentencing scheduled for July 7; faces up to 20 and 10 years plus repayment
The owner of a painting company in Lexington pleaded guilty to federal wire fraud and money laundering after admitting to stealing money from a COVID-19 relief program, according to court documents.
Antoine Adams Jr. pleaded guilty Tuesday in Eastern Kentucky District Federal Court. According to court documents, he devised a scheme to steal federal relief money from the U.S. by submitting a fake report about his business, A2 Painting Co., during the COVID-19 pandemic.
After obtaining more than $100,000 from the government, Adams bought two properties, a vehicle and “luxury goods” in Las Vegas, according to court documents. He used a check from A2 Painting’s bank account to pay a deposit on a vehicle for his mother at a car dealership in Lexington
“The defendant acted with the intent to defraud, knowing those representations contained in the application were false,” court documents say.
Adams is the registered agent for A2 Painting, which is based in Lexington, according to records from the Secretary of State’s Office.
The business was founded June 16, 2020. That same day, Adams filed a federal application for COVID-19 relief money.
Adams claimed A2 Painting had gross revenues of $185,206, employed eight people and was established May 20, 2018. Court documents say the U.S. Small Business Administration, which ran the program, approved a loan for $92,700.
Adams also applied for a Payment Protection Program loan using a fraudulent tax form, court documents say. The SBA approved a loan for $39,550 to cover payroll.
The maximum prison sentence is 20 years for the wire fraud charge and 10 years for the money laundering charge, according to court documents. Sentencing is scheduled for July 7.
Adams is also ordered to pay back the amount he was loaned, according to court documents. He was released on probation until sentencing.
