A Marshall County man and Small Business Administration employee was sentenced Wednesday to 62 months in prison for his involvement in a scheme to defraud SBA of more than $11 million.
According to court documents, Holly Springs resident LaKeith M. Faulkner, 31, was an SBA employee who used her position to make economic injury disaster loans intended to help borrowers with small amounts of money. Assisted in fraudulent loan applications worth more than $11 million. Businesses are recovering from the economic impact of the COVID-19 pandemic.
Borrowers paid Faulkner and co-defendant Norman Beckwood $2.3 million in return for cooperating in filing fraudulent loan applications.
On December 7, 2022, Faulkner pleaded guilty to one count of conspiracy to commit wire fraud. On May 24, U.S. District Judge Debra M. Brown sentenced Faulkner to 62 months in prison, followed by five years of supervised release.
In addition to serving a prison sentence, Faulkner was ordered to pay SBA $10,620,452 in damages.
On January 17, 2023, Mr. Faulkner’s co-defendant, Norman Beckwood, pleaded guilty to one count of conspiracy to commit wire fraud. Beckwood is scheduled to be sentenced on August 15.
The case is being prosecuted by Assistant U.S. Attorneys Clayton A. Dobbs and Parker King of the Northern District of Mississippi.
The case is being investigated by the Federal Bureau of Investigation, the US Small Business Administration’s Inspector General’s Office, and the US Department of the Treasury’s Office of the Tax Commissioner.
Courtesy of the U.S. Attorney’s Office North District