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Banks (Finance)

Former California Business Owner Pleads Guilty to $530,552 in False Statements to Financial Institutions

Strategic Insights

— 1 min read

A 51-year-old Rocklin man pleaded guilty to submitting false statements to financial institutions, causing a total loss of $530,552. Kevin Lee Co, the sole owner of Apollo HP Inc., applied for and obtained Paycheck Protection Program loans while concealing his pending criminal charges and guilty pleas. The case was the result of an investigation by the IRS, FBI, and Federal Reserve Board and Consumer Financial Protection Bureau -- Office of Inspector General.

Key Takeaways:

  • Kevin Lee Co, 51, of Rocklin, pleaded guilty to submitting false statements to financial institutions, causing a total loss of $530,552.
  • Co concealed his pending criminal charges and guilty pleas on loan applications to obtain Paycheck Protection Program loans for his company, Apollo HP Inc.
  • The case was the result of an investigation by the IRS, FBI, and Federal Reserve Board and Consumer Financial Protection Bureau -- Office of Inspector General.
  • Co faces a maximum statutory penalty of 30 years in prison and a $1 million fine for the false statements charge, with an additional consecutive sentence of up to 10 years in prison.
  • Co also faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for the wire fraud charge and 20 years in prison and a fine of up to $500,000 for the money laundering charge.
  • The actual sentence will be determined by the court after consideration of applicable statutory factors and the Federal Sentencing Guidelines.

Statistics:

  • $530,552: total loss to financial institutions due to Co's false statements.
  • 30 years: maximum statutory penalty in prison for the false statements charge.
  • $1 million: maximum statutory fine for the false statements charge.
  • 10 years: maximum additional consecutive sentence for the false statements charge, if applicable.
  • 20 years: maximum statutory penalty in prison for the wire fraud and money laundering charges.

Sources:

  • "Former California Business Owner Pleads Guilty to $530,552 in False Statements to Financial Institutions" (Mil OSI, 2022) [1]

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