CHARLESTON, W.Va. – United States Attorney Moore Capito announced a guilty plea today as part of a nationwide enforcement action led by the Justice Department’s National Fraud Enforcement Division, the Small Business Administration, and the SBA Office of Inspector General targeting fraud in the SBA’s Paycheck Protection Program (PPP). The Southern District of West Virginia was a key participant in this surge effort.
From June 12 to September 1, 2026, federal prosecutors across the country facilitated fraud enforcement actions spanning over 160 criminal defendants, including approximately 80 newly charged defendants, reaching approximately $245 million dollars in intended loss to American taxpayers.
“The whole-of-government crackdown on fraud is delivering decisive results, and the SBA surge demonstrates that our commitment is only strengthening,” Capito said. “Our office has secured 33 criminal convictions for COVID-19 fraud and more than $5.1 million in restitution. We will continue to root out pandemic-era fraud wherever it exists, hold every offender accountable, and bring those responsible to justice.”
“Pandemic loan relief was meant to keep American small businesses alive during government lockdowns — not line the pockets of fraudsters,” said Attorney General Todd Blanche. “The defendants charged during our summer surge allegedly fabricated businesses, submitted false payroll and revenue claims, stole identities, and concealed foreign ties on their applications — but they will now be prosecuted to the fullest extent of the law.”
“This summer surge shows what is possible when dedicated public servants across the country work together with a single purpose,” said Assistant Attorney General Colin M. McDonald of the National Fraud Enforcement Division. “Our mission is clear: protect taxpayer funds, safeguard the integrity of federal relief programs, and deliver justice to those who exploited them. We will remain steadfast every day—standing shoulder to shoulder with our partners—to identify fraud, pursue those responsible, and restore confidence in the programs meant to help American small businesses thrive.”
“Today’s announcement represents the largest-ever action against perpetrators of SBA fraud, with 870,000 suspended borrowers tied to $39 billion in suspected fraudulent PPP and COVID EIDL activity. In partnership with Vice President Vance and the White House Task Force to Eliminate Fraud, we’re putting fraudsters on notice: the federal government will no longer turn a blind eye to those who stole from taxpayers and exploited programs designed to sustain small businesses during the pandemic,” said SBA Administrator Kelly Loeffler. “With demand letters going out to suspected fraudsters, we’re also sending a clear message that they must repay their debts or face Treasury collections and possible federal law enforcement. Under this Administration, the free ride is over. We are restoring accountability, recovering taxpayer dollars, and protecting SBA programs for the legitimate small businesses they were created to serve.”
“Operation No Doze brings a focused and coordinated approach to pursuing fraud in SBA’s pandemic relief programs,” said SBA Inspector General William Kirk. “By concentrating our investigative resources and working closely with SBA and our law enforcement partners, we are strengthening our ability to identify fraud, recover taxpayer funds, and hold accountable those who exploited programs created to help small businesses in a time of extraordinary need. This initiative makes clear that the passage of time does not diminish our commitment to accountability.”
Capito announced that Nicholas Kind, 30, of Charleston, pleaded guilty on August 3, 2026, to theft of public money, property, or records. According to court documents and statements made in court, on March 1, 2021, a PPP loan application was submitted on Kind’s behalf. As part of his guilty plea, Kind admitted that the PPP loan application falsely stated that he had a business, that it was eligible for PPP funds, and that his gross income was $106,000 for the 2019 tax year. On March 2, 2021, the PPP loan application was approved and $20,000 in loan proceeds was deposited in Kind’s personal bank account. Kind admitted that he knew there was no legitimate reason for him to receive the $20,000 in PPP loan proceeds, and that he converted the money for his personal use. Kind is scheduled to be sentenced on November 17, 2026, and faces a maximum penalty of 10 years in prison, up to three years of supervised release, and a fine of up to $250,000. Kind also owes $20,000 in restitution.
This case was investigated by the West Virginia State Police, the U.S. Department of Homeland Security-Homeland Security Investigations (HSI), and the National Aeronautics and Space Administration Office of Inspector General (NASA OIG).
“We are proud to be part of this collaboration with the Department of Justice, SBA OIG, and our law enforcement partners,” said Robert Steinau, Senior Official at the NASA Office of Inspector General. “This summer surge underscores our unwavering commitment to tracking down the bad actors who exploited vital COVID-19 relief programs for personal gain. Holding these fraudsters accountable is paramount; every stolen PPP loan represents taxpayer money taken directly from the honest Americans it was meant to help.”
NASA OIG is an active member of the Pandemic Response Accountability Committee (PRAC) Fraud Task Force. The PRAC was established to promote transparency and facilitate coordinated oversight of the federal government’s COVID-19 pandemic response. The PRAC’s 20 member Inspectors General identify major risks that cross program and agency boundaries to detect fraud, waste, abuse, and mismanagement in the more than $5 trillion in COVID-19 spending, including spending via the Paycheck Protection Program (PPP), and Economic Injury Disaster Loan (EIDL) program. This case was also supported by the PRAC’s Pandemic Analytics Center of Excellence, which applies the latest advances in analytic and forensic technologies to help OIGs and law enforcement pursue data-driven pandemic relief fraud investigations.
On April 7, 2026, the Department of Justice announced the creation of the National Fraud Enforcement Division (“Fraud Division”). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports 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.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:26-cr-81.
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