ALEXANDRIA, Va. (WRIC) — Two Virginia men have been sentenced in federal court for their participation in a $7.6 million COVID fraud scheme.
According to court documents, Bennie Earl Magee, 55, of Manassas, and Michael Gilcher, 46, of Bealeton, were sentenced on Friday, Sept. 8, for their collusion to defraud banks and the Small Business Administration (SBA) of over $7 million of funds intended for COVID relief.
Between April 2020 and March 2021, Magee reportedly falsified payroll records, created fake IRS business tax returns and submitted falsified revenue reports for multiple companies in order to obtain over $7 million in Paycheck Protection Program (PPP) and COVID-19 Economic Injury Disaster Loans (EIDL).
Of the $7 million, Gilcher received $1.4 million and wrote checks — valued at approximately $620,000 — back to Magee’s company, Bull Run Capital.
According to the U.S. Department of Justice, Magee also involved another individual in the scheme and tried to recruit others. Magee used over $5 million of the funds he received to invest in cryptocurrency, purchase vehicles and pay other personal and business expenses.
“PPP and EIDL loans were created to assist those financially affected by the COVID-19 pandemic,” said U.S. Attorney for the Eastern District of Virginia, Jessica D. Aber. “Mr. Magee and Mr. Glicher not only lied to the IRS and stole millions of taxpayer funds, but frivolously spent it on items such as vehicles and cryptocurrency.”
Magee was sentenced to five years in prison and Gilcher was sentenced to one year in prison for their roles in the conspiracy.
