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A Lexington man who made hundreds of thousands of dollars COVID-19 relief funds through false claims is headed to federal prison, after authorities say he squandered some of the money on gambling and other personal expenses.
John A. Hopkins, 48, was sentenced Tuesday to 24 months behind bars by US District Judge Gregory Van Tatenhove in Frankfort. Hopkins previously admitted he engaged in a fraud and money laundering scheme involving federal pandemic relief programs designed to keep struggling small businesses afloat.
ACCORDING to prosecutors, the scheme lasted from April 2020 to October 2021. During this time, Hopkins filed multiple applications for Economic Injury Disaster Loans and Paycheck Protection Program funds, programs created to shore up businesses hit by shutdowns and economic uncertainty.
Authorities said the paperwork he submitted was filled with false statements. The applications were filed under business names connected to him, including Blurock LLC and Hopkins Drywall. In filings, he exaggerated earnings and misrepresented eligibility to qualify for more payments.
Court records show he submitted 10 fraudulent EIDL applications, including a request to increase an already approved loan and a separate false PPP application. In July 2020, a filing increased his income as a pastor last year. That claim resulted in the approval of a $44,000 EIDL loan and a $1,000 advance payment.
He later convinced officials that he was entitled to more money, getting a $352,000 increase in an EIDL after falsely telling congressional staff that more funds were owed to him. Prosecutors also said he obtained a $120,000 PPP loan for Blurock LLC using additional misrepresentations.
How a Lexington man used COVID-19 relief funds for gambling
In total, Hopkins requested nearly $1.73 million in pandemic relief funds and ultimately received about $517,000, according to court documents.
Instead of using the money to support legitimate business operations, prosecutors said he diverted it to cover personal expenses. Among the expenses are mortgage payments, cryptocurrency investments, cash gifts to friends, and gambling.
Federal law requires Hopkins to serve at least 85 percent of his sentence. Once released, he will spend three years under the supervision of the US Probation Office.
The investigation was led by the Treasury Inspector General for Tax Administration and the Internal Revenue Service Criminal Investigation division. Assistant US Attorney Kate Dieruf handled the prosecution.
Federal officials have repeatedly warned that the task of easing the pandemic remains a priority. In 2021, the Department of Justice created the COVID-19 Fraud Enforcement Task Force to coordinate nationwide efforts aimed at abuse of relief programs.
Authorities continue to urge tips from the public about suspected schemes involving COVID-19 funds, saying accountability remains a focus even as pandemic programs slow.
Featured image: John A. Hopkins via Instagram
The post Lexington man gets prison time in federal COVID-19 loan fraud scheme first appeared in ReadWrite.
