• ITVI.USA
    15,496.720
    85.590
    0.6%
  • OTLT.USA
    2.743
    0.003
    0.1%
  • OTRI.USA
    21.110
    0.000
    0%
  • OTVI.USA
    15,466.390
    90.520
    0.6%
  • TSTOPVRPM.ATLPHL
    3.300
    0.000
    0%
  • TSTOPVRPM.CHIATL
    3.140
    0.190
    6.4%
  • TSTOPVRPM.DALLAX
    1.590
    0.150
    10.4%
  • TSTOPVRPM.LAXDAL
    3.330
    0.020
    0.6%
  • TSTOPVRPM.PHLCHI
    2.170
    0.020
    0.9%
  • TSTOPVRPM.LAXSEA
    4.080
    0.130
    3.3%
  • WAIT.USA
    125.000
    -1.000
    -0.8%
  • ITVI.USA
    15,496.720
    85.590
    0.6%
  • OTLT.USA
    2.743
    0.003
    0.1%
  • OTRI.USA
    21.110
    0.000
    0%
  • OTVI.USA
    15,466.390
    90.520
    0.6%
  • TSTOPVRPM.ATLPHL
    3.300
    0.000
    0%
  • TSTOPVRPM.CHIATL
    3.140
    0.190
    6.4%
  • TSTOPVRPM.DALLAX
    1.590
    0.150
    10.4%
  • TSTOPVRPM.LAXDAL
    3.330
    0.020
    0.6%
  • TSTOPVRPM.PHLCHI
    2.170
    0.020
    0.9%
  • TSTOPVRPM.LAXSEA
    4.080
    0.130
    3.3%
  • WAIT.USA
    125.000
    -1.000
    -0.8%
Legal issuesMost PopularNewsTop StoriesTrucking

Feds claim trucking company owner bought house, cars with PPP loan

Feds claim McConnell used some PPP funds for stock market investments

The owner of a Pennsylvania trucking company is facing wire fraud and money laundering charges after federal prosecutors claim he used $467,000 in funds obtained through the U.S. Small Business Administration’s Paycheck Protection Program (PPP) to purchase a residential property, two vehicles and stock market investments.

Federal prosecutors claim Keith McConnell, 43, of Carlisle, Pennsylvania, submitted fraudulent PPP loan applications and forged documents on behalf of his defunct Carlisle-based trucking company, KB Transportation LLC, the Department of Justice said in a statement on Friday.

Atlanta-based Kabbage Inc. approved McConnell’s first PPP loan application for $312,000 in June 2020. McConnell claimed his trucking company had 26 employees and had monthly payroll expenses of nearly $125,000. However, prosecutors claim McConnell’s trucking company didn’t operate in 2019 or 2020 and had no employees or payroll expenses.

After receiving his PPP loan, prosecutors allege he went on a personal spending spree, purchasing a house, two vehicles and investing in the stock market.

“Covid relief fraud is a high priority for our office and the Department of Justice,” Acting U.S. Attorney Bruce D. Brandler said. “These funds were meant to help small businesses survive the pandemic, not for fraudsters to support an opulent lifestyle.”

Seven months after receiving his first round of PPP funds, McConnell applied for a second loan for $155,200 in January 2021. However, those funds were never disbursed, according to the DOJ. 

McConnell faces up to 30 years in prison.

Forgivable loans through the PPP, administered by the Small Business Administration, started out with $350 billion in the CARES Act signed by former President Donald Trump in late March 2020 and were reupped in April 2020 with an additional $320 billion. The third round of funding, $284 billion in forgivable PPP loans through the SBA, opened up to lenders in January. 

Read related articles:

Road Doctor owner accused of paving way for luxury cars with PPP loan
Utah trucking owner admits bribing FedEx manager, defrauding PPP loan program
Trucking company owners among 6 indicted in PPP loan fraud scheme
Trucking company owner indicted in PPP loan fraud, Ponzi scheme

Click for more articles by Clarissa Hawes.

Clarissa Hawes, Senior Editor, Investigations and Enterprise

Clarissa has covered all aspects of the trucking industry for 14 years. She is an award-winning journalist known for her investigative and business reporting. Before joining FreightWaves, she wrote for Land Line Magazine and Trucks.com. If you have a news tip or story idea, send her an email to chawes@freightwaves.com.

16 Comments

  1. This what happens when you give all the small business ppp money to ppl that didn’t really lose anything. And leave us ppl that really needed it out. OH WELL🤷🏽‍♀️ Who Cares

  2. I really own a company since 2008, needed the ppp money, and was declined. I had to lay my employees off and they are unemployed. So do I feel sorry for him, no I feel sorry for the system.

  3. I feel that as long as the money was used for bills and not on games and things of that nature then no criminal charges should be filed I think that instead of locking them up they should be allowed to pay the money back.

  4. I never thought there are still reliable loan lenders until I met Mr.David Kirchheimer, who indeed helped with the loan and changed my belief. I don’t know if you are in any way in need of a genuine and urgent loan, Be free to contact Mr.David Kirchheimer of oak tree capital management at (ocmloans@yandex.com) and whatsapp +1 401 355 2763

Leave a Reply

Your email address will not be published. Required fields are marked *

We are glad you’re enjoying the content

Sign up for a free FreightWaves account today for unlimited access to all of our latest content

By signing in for the first time, I give consent for FreightWaves to send me event updates and news. I can unsubscribe from these emails at any time. For more information please see our Privacy Policy.