A Michigan resident, Malcolm Culmer, 36, has pleaded guilty to charges of wire fraud and money laundering in connection with fraudulent claims for COVID-19 relief funds. The plea was entered before Chief U.S. District Judge David Bunning in Covington, Kentucky.
Court documents show that between April 2020 and July 2021, Culmer submitted false information to obtain funds from various government relief programs established under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. This legislation created new unemployment compensation programs funded by the federal government and managed by state agencies. It also expanded existing programs such as the Economic Injury Disaster Loan (EIDL) Program run by the Small Business Administration to support small businesses affected by economic disasters.
According to his plea agreement, Culmer provided fabricated details about employment history, residence, and business ventures on relief applications. He filed eight EIDL applications using fictitious companies and sought a total of $1,091,499 in loans; $187,500 of these requests were approved. Additionally, Culmer submitted a fraudulent application for pandemic unemployment benefits in Kentucky and received $39,496.
Culmer was also charged with money laundering after conducting several transactions over $10,000 with illegally obtained funds. These included cash withdrawals, transfers between bank accounts, and purchases of automobiles intended to expand a vehicle rental business.
Paul McCaffrey, Acting United States Attorney for the Eastern District of Kentucky; Joseph V. Cuffari Ph.D., Inspector General at the Department of Homeland Security Office of Inspector General (DHS-OIG); and Mathew Broadhurst, Special Agent in Charge at the U.S. Department of Labor Office of Inspector General (DOL-OIG), Southeast Region announced the guilty plea.
The investigation was led by DHS-OIG and DOL-OIG. Assistant U.S. Attorney Brittany Dunn-Pirio is prosecuting the case.
Culmer is scheduled for sentencing on December 16 and faces up to 20 years in prison if convicted on all counts. Sentencing will be determined according to federal guidelines.
In May 2021, the Attorney General formed the COVID-19 Fraud Enforcement Task Force to strengthen efforts against pandemic-related fraud across government agencies. The task force coordinates investigations into domestic and international actors involved in such schemes and works with agencies responsible for distributing relief funds to prevent future fraud through shared resources and improved detection methods. More information about these efforts can be found at https://www.justice.gov/coronavirus.
The public is encouraged to report suspected COVID-19 fraud by calling the National Center for Disaster Fraud Hotline at 866-720-5721 or submitting information via https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
