News Summary
Joey Wayne Mackey, the CEO of a construction company in Visalia, was arrested for allegedly misusing over $4 million in COVID-19 relief funds. Federal complaints reveal that Mackey submitted fraudulent Paycheck Protection Program applications, inflating employee counts and payroll expenses. Investigations showed that he laundered the money through fake payroll payments and made substantial real estate purchases. Facing severe penalties, Mackey’s case emphasizes the federal government’s crackdown on pandemic relief fraud.
Visalia: Construction CEO Arrested for COVID-19 Relief Fraud
The city of Visalia experienced a significant federal action Friday as Joey Wayne Mackey, the 45-year-old CEO of a local construction company, was arrested on charges related to fraudulently securing COVID-19 relief funds. The arrest follows a federal complaint that alleges Mackey misused over $4 million intended to support small businesses and workers affected by the pandemic.
Details of the Alleged Fraudulent Activities
According to U.S. Attorney Eric Grant, Mackey is accused of submitting fraudulent Paycheck Protection Program (PPP) loan applications between April and June 2020. These applications were made on behalf of three different business entities: Forcum-Mackey Construction Inc., JWM Inc., and Mack Aviation LLC. The applications allegedly included inflated figures regarding employee counts and payroll expenses, which resulted in the government disbursing a total of $4,082,550 in taxpayer funds based on false information.
Use of the Funds and Further Allegations
Authorities state that Mackey was involved in laundering the funds through fraudulent payroll payments made to family members, including his minor children. After disbursing these funds, Mackey allegedly withdrew money to purchase multiple assets, such as office parks, luxury apartments, and other investments. Investigations suggest that Mackey continued to make real estate acquisitions and high-end purchases using the proceeds of the COVID-19 relief loans through at least 2023.
Investigative Agencies and Potential Penalties
The case was thoroughly examined by multiple agencies, including the Federal Bureau of Investigation (FBI), the Federal Deposit Insurance Corporation (FDIC) Office of Inspector General, and the SBA Office of Inspector General. Mackey faces severe penalties if convicted, with a potential maximum sentence of 30 years in federal prison and fines reaching up to $1 million.
Background and Context of the Case
The COVID-19 pandemic prompted the federal government to implement relief programs aimed at supporting small businesses and workers suffering economically. The Paycheck Protection Program (PPP) was one such initiative designed to provide loans to retain employees and cover essential expenses. However, the program was soon targeted by fraudsters attempting to exploit its urgency and relative ease of application.
This case highlights ongoing efforts by federal authorities to identify and prosecute individuals abusing pandemic relief funds. Mackey’s arrest underscores the importance of oversight and the consequences of violating federal financial assistance programs meant to aid struggling communities during unprecedented times.
Legal Proceedings and Next Steps
Following his arrest, Mackey is expected to face formal charges in federal court. The prosecution will present evidence related to his alleged actions, and he will have an opportunity to respond in court. The case remains ongoing, and authorities continue to investigate potential additional misconduct related to Mackey’s financial activities.
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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 RALEIGH WRITER
RALEIGH STAFF WRITER The RALEIGH STAFF WRITER represents the experienced team at HERERaleigh.com, your go-to source for actionable local news and information in Raleigh, Wake 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 the North Carolina State Fair, Raleigh Arts Festival, and the Hopscotch Music Festival. Our coverage extends to key organizations like the Greater Raleigh Chamber of Commerce and Visit Raleigh, plus leading businesses in technology and education that power the local economy such as Red Hat and NC State University. As part of the broader HERE network, including HEREAsheville.com, HERECharlotte.com, HEREGreensboro.com, and HEREOBX.com, we provide comprehensive, credible insights into North Carolina's dynamic landscape.
