A Maryland man faces up to 20 years in prison after fraudulently redirecting the federal government’s COVID-19 loan funding towards personal expenses, cash withdrawals and real estate purchases.
Federal prosecutors in Maryland say Edward McCorkle, 37, of Baltimore County, pleaded guilty to one count of wire fraud this week.
McCorkle defrauded multiple financial institutions to obtain loans for various purported businesses that he previously established under the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL), two initiatives established under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
McCorkle attempted to secure $946,500 in fraudulent loans and ultimately obtained $523,700. He and his co-conspirator misrepresented themselves on their loan applications and included fabricated employer tax returns.
Prosecutors note that the Maryland man burned through the loan funding on multiple personal purchases.
“In addition to the $49,300 kickback he paid to the co-conspirator, McCorkle also used the fraudulently obtained PPP funds for multiple impermissible purposes under the PPP. McCorkle used the fraudulently obtained PPP funds to buy and rehabilitate real estate in Baltimore City, pay credit-card expenses, and to make large withdrawals for his own benefit.
On June 5, more than $98,000 was withdrawn from the account in two transactions, including a bank check payable to McCorkle for $49,100. Then on June 15, two withdrawals totaling more than $28,000 were made from the account. On June 19, a withdrawal of $14,500 was made from the account. Then McCorkle accessed the remaining loan proceeds via cash withdrawals, debit-card purchases, and other electronic payments in June, July, August, and September. By October 1, the balance sat at approximately $3,400 in the account.”
McCorkle faces up to two decades in prison plus three years of supervised release.
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