Man pleads guilty after attempting to steal $1M in COVID relief funds
A man pleaded guilty to wire fraud and money laundering after he attempted to steal more than $1 million in COVID-19 relief funds.
From April 2020 to July 2021, Malcolm Culmer lied about his residence, employment history and business to obtain money from the Economic Injury Disaster Loan Program, unemployment and Small Business Administration, according to his plea agreement. Court records say Culmer lived in Boone County, and federal officials said he had also lived in Michigan.
In total, Culmer submitted eight Economic Injury Disaster Loan applications through fictitious companies in efforts to steal $1,091,499, according to court documents. More than $187,000 was approved in those loans, which were intended to provide financial assistance to businesses during the pandemic.
Culmer also applied for pandemic unemployment benefits and lied about businesses, employees and lost damages. His fraudulent application was approved, and he received $39,496 in benefits.
He spent more than $10,000 using the fraudulent funds, withdrew cash, transferred money between bank accounts and purchased cars to expand a vehicle rental business, resulting in the money laundering charge.
Culmer waived his right to a formal indictment and pleaded guilty.
He faces a maximum of 20 years in prison, and his sentencing is scheduled for Dec. 16. During that hearing, the court will hear sentencing guidelines that could lower the sentence a judge imposes.
