Federal prosecutors in multiple states say five people schemed for years to steal COVID relief funds, triggering an indictment and arrests that allege $1.6 million in fraudulent claims tied to PPP and EIDL programs.
Five people were arrested on Friday in Kentucky, Indiana, and Colorado on federal charges for fraudulently taking $1.6 million in COVID-19 relief funds. On April 8, 2026, a federal grand jury in Louisville returned an indictment, which charges two individuals—Kaelynn Greene, 31, and Camden Newton, 32—with wire fraud, conspiracy to commit wire fraud, aggravated identity theft, and money laundering, all related to fraudulently obtaining COVID-19 financial assistance program funds.
The indictment also charges Betty Walker a/k/a Betty Bailey, 39, Breanna Patterson, 32, and Jordan Greene, 34, with conspiracy to commit wire fraud. Prosecutors say the group worked together in overlapping roles to push through applications that did not reflect real businesses or legitimate need.
Court documents say that for over two years, Kaelynn Greene and Camden Newton engaged in a scheme to fraudulently obtain Economic Injury Disaster Loans and Paycheck Protection Program Loans through fraudulent statements on applications, either in their own names, through entities they created, or through stolen identities. The filings allege a steady pattern of falsified paperwork designed to trick lenders and the SBA into releasing funds.
Greene also conspired with Betty Walker, Breanna Patterson, and Jordan Greene, and others to recruit borrowers who were ineligible for PPP loans to submit fraudulent PPP loan applications on their behalf. In many cases the applications asserted businesses that did not exist, claimed exaggerated sales, or inflated hours and payroll to meet forgiveness rules.
The defendants allegedly created fake tax forms that were also submitted as part of the loan process, and Greene collected kickbacks from borrowers after loan proceeds were disbursed. In total, the defendants combined caused more than 20 EIDL applications and more than 50 PPP applications to be filed on behalf of ineligible borrowers.
The fraudulent applications resulted in the disbursement of more than $850,000 in fraudulently obtained federal funds and attempts to obtain an additional more than $750,000 in such loan proceeds that were declined. These schemes looted federally funded programs created through the Coronavirus Aid, Relief, and Economic Security Act that were meant to help people and small businesses that struggled financially during the COVID-19 pandemic.
The Small Business Administration administered those funds through two programs. First, the SBA provided PPP loans designed to provide a direct incentive for small businesses that were in operation on February 15, 2020, to keep their workers on the payroll.
PPP loan proceeds were required to be used by the business on certain permissible expenses, and interest and principal on PPP loans could be entirely forgiven if the business spent the loan proceeds on the allowable expenses within a designated period and used a certain percentage of the PPP loan proceeds on payroll expenses. Prosecutors say the fraudsters abused those rules by inventing payroll or overstating eligible costs.
Second, the SBA provided Economic Injury Disaster Loans to eligible small businesses, including sole proprietorships and independent contractors, whose businesses suffered because of COVID-19, to pay bills and operating expenses that could otherwise have been met had the disaster not occurred. EIDL applications were submitted directly to the SBA via the SBA’s online application website, and the SBA processed applications and funded the loans for qualifying applicants.
“As part of the Department of Justice’s new National Fraud Enforcement Division, this indictment begins the process of holding five fraudsters accountable for their theft of hard-earned taxpayer dollars. These defendants allegedly took advantage of two federally funded programs designed to carry our country and its small businesses through unprecedented economic uncertainty by lying, cheating, and stealing. Their conduct will not be tolerated, and they will be aggressively prosecuted by this Office,” said U.S. Attorney Kyle G. Bumgarner.
Kaelynn Greene, Breanna Patterson, and Betty Walker made their initial court appearance before a U.S. Magistrate Judge in the U.S. District Court for the Western District of Kentucky yesterday. Jordan Greene and Cameron Newton’s initial appearance has not yet been scheduled by the Court.
This case is being investigated by TIGTA. Assistant U.S. Attorney Nicole Elver is prosecuting the case.
Colin McDonald, Assistant Attorney General for the National Fraud Enforcement Division, U.S. Attorney Kyle G. Bumgarner of the Western District of Kentucky, Special Agent in Charge Kelly Moening of the Treasury Inspector General for Tax Administration Great Lakes Field Division made the announcement.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division. The core mission of the Fraud Division is to zealously investigate and prosecute those who steal or fraudulently misuse taxpayer dollars. Department of Justice efforts to combat fraud support President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
