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Kenneth Gaughan, a 41-year-old from Washington, D.C., has been arrested and accused of misappropriating $1.5 million of his $2.1 million COVID-19 relief funds, intended for the Paycheck Protection Program and Economic Injury Disaster Loans. Reports indicate he used the money to purchase a house, a yacht, and a Kia Stinger, as noted by Business Insider.
The U.S. Department of Justice has filed a complaint against Gaughan, alleging that he created fake documents and bank statements to secure funds from multiple Small Business Administration lenders for various companies. He purportedly asserted that these businesses registered emotional support animals, which they had not done. Consequently, Gaughan is facing charges that include one count of money laundering, one count of bank fraud, one count of wire fraud, and one count of theft of government funds.
Among the notable purchases made with the alleged COVID-19 relief funds are a $1.13 million rowhouse in Washington, D.C., a $300,000 2020 Cruisers Yachts 338 CX, a 33-foot yacht, and a $46,000 2020 Kia Stinger. Given that the starting price for the Stinger is $33,090, this specific model must have come with additional features or options, likely pushing it into a higher price range. How humble!
Notably, the Department of Justice describes the Stinger as a “luxury sports sedan,” highlighting how far the brand has come.
The federal authorities have seized the Stinger, the yacht, and Gaughan’s bank and investment accounts. Additionally, they have initiated a civil forfeiture process for the rowhouse.
Since the Paycheck Protection Program began, over $525 billion in forgivable loans have been approved, as noted by Business Insider. Nevertheless, not all funds have been utilized for their intended purpose of supporting small businesses; some recipients have allegedly misused these funds for personal expenditures, while larger corporations have navigated loopholes to claim financial aid. In fact, two other individuals connected to the PPP have been charged with buying Lamborghinis using these funds.
Gaughan’s legal troubles extend beyond this case. He also faces a separate charge concerning the alleged embezzlement of over $472,000 from the Catholic Archdiocese of Washington, D.C., where he previously worked as an Assistant Superintendent.
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