News Summary
Joey Wayne Mackey, the CEO of a construction company in Visalia, was arrested on federal charges for securing over $4 million in COVID-19 relief funds through fraudulent loan applications. The federal investigation revealed that Mackey inflated employee numbers and payroll costs for his businesses to obtain taxpayer-backed loans. Allegations include misappropriation of funds and using them for luxury real estate investments. If convicted, Mackey faces severe penalties, highlighting the ongoing efforts to combat fraud in government relief programs.
Visalia, CA – Joey Wayne Mackey, the CEO of a Visalia construction company, was arrested on Friday under a federal complaint, facing accusations of fraudulently securing over $4 million in COVID-19 relief funds. The arrest marks a significant enforcement action related to the misuse of government assistance programs initiated during the pandemic.
The case was announced by U.S. Attorney Eric Grant, detailing that between April and June of 2020, Mackey allegedly submitted false loan applications to the Paycheck Protection Program (PPP). These applications were purportedly filed for three businesses owned by Mackey: Forcum-Mackey Construction Inc., JWM Inc., and Mack Aviation LLC.
According to the charges, Mackey’s loan applications inflated key financial figures, including employee numbers and payroll costs. As a result of these misleading submissions, a bank disbursed a total of $4,082,550 in taxpayer-backed funds to Mackey.
The allegations further indicate that the funds were misappropriated through fraudulent payroll payments, with some transactions purportedly involving payments to Mackey’s family members, including his minor children. Following these transactions, Mackey is accused of withdrawing substantial amounts of cash to finance various real estate acquisitions, including office parks and luxury apartments. Reports suggest he has continued to make high-value real estate investments and luxury purchases funded by these loans as recently as 2023.
The investigation into Mackey’s activities was a collaborative effort involving federal agencies, including the FBI, the FDIC Office of Inspector General, and the SBA Office of Inspector General. These organizations have been active in monitoring and responding to instances of fraud related to COVID-19 relief funds, aiming to uphold the integrity of programs designed to assist businesses during the ongoing health crisis.
If convicted on the charges against him, Joey Mackey could face severe legal consequences, including a prison sentence of up to 30 years and financial penalties reaching $1 million. The case has drawn attention not only for the large sums of money allegedly misappropriated but also for the implications it has for trust in government assistance programs initiated to support businesses during unprecedented times.
The Paycheck Protection Program was established in response to the COVID-19 pandemic to help small businesses keep their workforce employed during the economic disruption caused by the outbreak. The program aimed to provide forgivable loans that would cover payroll costs and other essential business expenses. While the program has aided millions of businesses, it has also presented opportunities for abuse and fraud, prompting rigorous investigations across the country.
As investigations continue, the case emphasizes the importance of transparency and honesty in financial applications, especially in times of crisis. The legal proceedings against Mackey will undoubtedly be closely monitored as part of the broader efforts to combat fraud and ensure accountability in the use of federal relief funding.
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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 MILWAUKEE WRITER
MILWAUKEE STAFF WRITER The MILWAUKEE STAFF WRITER represents the experienced team at HEREMilwaukee.com, your go-to source for actionable local news and information in Milwaukee, Milwaukee 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 Summerfest, Milwaukee Film Festival, and the Milwaukee Boat Show. Our coverage extends to key organizations like the Metropolitan Milwaukee Association of Commerce and Visit Milwaukee, plus leading businesses in manufacturing and brewing that power the local economy such as Harley-Davidson and MillerCoors. As part of the broader HERE network, we provide comprehensive, credible insights into Wisconsin's dynamic landscape.
