News Summary

Joey Wayne Mackey, a CEO from Visalia, faces federal charges for allegedly fraudulently acquiring over $4 million in COVID-19 relief funds. Mackey submitted false PPP loan applications under multiple business entities, inflating employee numbers and payroll costs. Investigations revealed he laundered funds through family member payments and made significant real estate purchases. If convicted, Mackey could face up to 30 years in prison and a $1 million fine, with further investigations highlighting broader issues of fraud in pandemic relief programs.

Visalia CEO Arrested for Alleged COVID-19 Relief Fund Fraud

Visalia, CA – Joey Wayne Mackey, a 45-year-old CEO of a construction company based in Visalia, was arrested on a federal complaint on Friday. Mackey is facing serious allegations of fraudulently acquiring more than $4 million in COVID-19 relief funds designated for businesses during the pandemic.

The charges against Mackey were announced by U.S. Attorney Eric Grant. It is alleged that between April and June 2020, Mackey submitted multiple false applications for the Paycheck Protection Program (PPP) loans. These applications were filed under the names of three distinct entities—Forcum-Mackey Construction Inc., JWM Inc., and Mack Aviation LLC.

Mackey’s applications are claimed to have included inflated figures regarding the number of employees and payroll costs for the businesses in question. As a result of these fraudulent submissions, a financial institution disbursed a total of $4,082,550 in taxpayer-backed funds that were ultimately obtained under false pretenses.

Details of the Allegations

Further investigation revealed that Mackey reportedly laundered a substantial portion of the funds through purported payroll payments to family members, including his minor children. Following these fraudulent payments, he withdrew substantial amounts of money to fund purchasing activities, which included office parks, luxury apartments, and other lucrative investments.

Mackey allegedly continued to make various real estate acquisitions and indulge in purchases funded by these loans through at least 2023. This indicates a prolonged period during which he misappropriated funds meant for legitimate business expenses, further compounding the seriousness of the charges against him.

Investigation and Potential Penalties

The case was thoroughly investigated by several federal agencies, including the FBI, the FDIC Office of Inspector General, and the Small Business Administration (SBA) Office of Inspector General. These agencies came together to uncover the extent of Mackey’s alleged fraudulent activities, leading to his arrest.

If convicted, Mackey faces significant legal consequences, including a potential sentence of up to 30 years in prison and a hefty fine reaching $1 million. The legal proceedings are expected to unfold in the coming weeks as federal authorities move forward with their case against him.

Background on COVID-19 Relief Funding

The Paycheck Protection Program was established as part of the federal government’s response to the COVID-19 pandemic, aiming to provide financial assistance to small businesses to help them maintain payroll and cover specific expenses during unprecedented economic disruptions. The program was designed to support businesses suffering from the effects of the pandemic, allowing them to keep employees on the payroll while maintaining operational viability.

However, as with many large-scale financial assistance programs, instances of fraud have surfaced, prompting investigations into how funds were allocated and utilized. Mackey’s case is one among many that illustrates the vulnerabilities within the system designed to support struggling businesses during a national emergency.

The outcome of this case could have implications not just for Mackey but also for ongoing discussions about the integrity and oversight of relief programs established during crises. As authorities continue to examine claims of misuse, the situation underscores the importance of ethical practices in business management and accountability within financial assistance frameworks.

Deeper Dive: News & Info About This Topic

HERE Resources

Baltimore County Council Calls for Inspector General Oversight of School Budget
Baltimore City Reports Dramatic Decrease in Violent Crime
Construction Begins on New Nebraska State Prison
Baltimore Developer Files for Bankruptcy Amid Financial Woes
Legal Expert Predicts Weakness in Major Real Estate Lawsuits
Developer Sentenced for COVID-19 Relief Fraud and Money Laundering
Federal Appeals Court Reinstates Health Care Fraud Conviction
Realtor Pleads Guilty in $1.7 Million Wire Fraud Scheme
Federal Charges Dismissed Against Utah Plastic Surgeon
Charges Dropped Against Utah Plastic Surgeon Amid Vaccine Fraud Case

Additional Resources

• GV Wire: Visalia Construction CEO Mackey Arrested
• Your Central Valley: Construction CEO COVID Relief Fraud
• KMPH: Visalia CEO Arrested for Allegedly Embezzling $4M
• Google Search: COVID-19 Paycheck Protection Program
• Encyclopedia Britannica: Paycheck Protection Program

Author: STAFF HERE BALTIMORE WRITER

BALTIMORE STAFF WRITER The BALTIMORE STAFF WRITER represents the experienced team at HEREBaltimore.com, your go-to source for actionable local news and information in Baltimore, Baltimore County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Baltimore Book Festival, Preakness Stakes, and Artscape. Our coverage extends to key organizations like the Baltimore Chamber of Commerce and Visit Baltimore, plus leading businesses in shipping and healthcare that power the local economy such as the Port of Baltimore and Johns Hopkins Medicine. As part of the broader HERE network, we provide comprehensive, credible insights into Maryland's dynamic landscape.