Two convicted of $2 million in fraud in connection with Eastern Kentucky business
Two people accused of defrauding investors and lenders out of more than $2 million through a business in Eastern Kentucky have been found guilty.
A jury in federal court in Lexington convicted Douglas William Vance, 53, and Molly Irene McKinnon, 59, Thursday on charges of conspiracy to commit wire fraud, wire fraud and conspiracy to commit money laundering.
Vance, of Richlands, Va., owned a company called Nex-Gen Industries that had a facility at the industrial park near Hazard, in Perry County. McKinnon, who lives in Georgia, was the chief financial officer, according to court records.
The two also were involved in a company called NexGen Energy Partners LLC.
Evidence at their trial showed between August 2016 and December 2018, Vance and McKinnon used false bank statements, financial reports, purchase orders and sales and production figures to dupe investors and lenders, according to a news release from U.S. Attorney Carlton S. Shier IV and Jodi Cohen, special agent in charge of the FBI in Kentucky.
The false information concealed the fact that Vance and McKinnon misappropriated money from investors and lenders for purposes other than operating the business, according to the release.
State records show the two businesses are defunct.
Chief U.S. District Judge Danny C. Reeves scheduled Vance and McKinnon to be sentenced in February.
The fraud charges carry a maximum sentence of 20 years each, though the sentences for Vance and McKinnon will likely be less than that under advisory sentencing guidelines.
