A Visalia construction company CEO, Joey Wayne Mackey, was arrested on allegations of fraudulently obtaining over $4 million in COVID-19 relief funds and federally guaranteed small business loans. The announcement was made by U.S. Attorney Eric Grant.
Court documents state that between April and June 2020, Mackey submitted fraudulent Paycheck Protection Program (PPP) loan applications for three companies: Forcum-Mackey Construction Inc., JWM Inc., and Mack Aviation LLC. Forcum-Mackey Construction is a general contractor based in Ivanhoe, while JWM Inc. is described as a construction consulting firm operated from Mackey’s home in Visalia. Mack Aviation LLC provides refueling and hangar rental services at the Visalia Municipal Airport.
The applications allegedly included false information about employee numbers and payroll costs, leading a partner bank to disburse $4,082,550 in PPP funds that would not have been provided otherwise. Authorities say that Mackey laundered these funds through payroll payments to family members, including his minor children, whose bank accounts he controlled. In October 2020, the funds were withdrawn from those accounts to purchase revenue-generating real estate such as office parks and luxury apartment complexes. According to investigators, Mackey continued making investments and luxury purchases traceable to PPP funds through at least 2023.
“This case is the product of an investigation by the Federal Bureau of Investigation, the Federal Deposit Insurance Corporation Office of Inspector General, and the Small Business Administration Office of Inspector General,” according to the press release. “Assistant U.S. Attorneys Calvin Lee and Kevin Khasigian are prosecuting the case.”
If convicted, Mackey could face up to 30 years in prison and a $1 million fine. Sentencing would be determined by the court after considering statutory factors and federal Sentencing Guidelines. The charges are currently only allegations; Mackey is presumed innocent until proven guilty beyond a reasonable doubt.
The arrest comes as part of an ongoing effort by the California COVID-19 Fraud Enforcement Strike Force operation—one of five interagency teams created by the U.S. Department of Justice targeting large-scale pandemic relief fraud schemes across multiple states.
