LEXINGTON, Ky. (FOX 56) — A Woodford County man has been sentenced for obtaining fraudulent COVID-19 loans.
Randall “Rocky” Blankenship, Jr., 49, of Versailles, was sentenced to 42 months in federal prison on Thursday by U.S. District Judge Karen C. Caldwell. He pled guilty to conspiracy to commit wire fraud in order to obtain loans from the Paycheck Protection Program (PPP).
According to court documents, Blankenship submitted four fraudulent PPP loan applications in April 2020 for Blankenship RV Finance Solutions LLC, RSGG Properties LLC, RSGG Holdings LLC, and RSGG Investments LLC.
Official records said that Blankenship created fake tax documents and payroll records stating his businesses had hundreds of thousands of dollars in quarterly payroll. Investigations found that none of the entities had any payroll expense at all.
Loan applications were made through Kentucky Bank and Independence Bank, which resulted in Blankenship acquiring $1,323,829 in fraudulent PPP loans.
According to Blankenship’s plea, he used the allotted funds for the RV business he owned, and for personal use, which included buying real estate and paying off casino debt. He has since repaid the stolen funds.
Blankenship’s accountant, Tammy Jo Goodwin, pled guilty to conspiring to obtain the fraudulent loans. The sentencing for that case is scheduled for September 22 of this year.
Randall “Rocky” Blankenship, Jr. has been sentenced to 42 months in jail and fined $30,000.