In a case primarily investigated by the IRS Criminal Investigation division, an Indiana man has been indicted on 52 charges related to a $27 million bank fraud scheme.
According to an official release, Tod Ray Keilholz, was arrested without incident at his Jefferson County, Indiana residence prior to his indictment and remains in federal custody pending a detention hearing that will take place today, September 20.
Among Keilholz's charges are eight counts of bank fraud, six counts of making false statements to a financial institution, and four counts of making false statements to the Small Business Administration. These 18 charges are related to four fraudulent Paycheck Protection Program (PPP) loans in conjunction with a development Keilhoz was purportedly working on in Valparaiso, Indiana.
In addition, Keilholz faces money laundering charges related to transactions involving funds from his $27 million fraud scheme. Finally, he has been indicted on 10 counts of aggravated identity theft again related to the bank fraud scheme.
The IRS notes specifically:
According to the indictment, Keilholz received a total of $12,430,932 in PPP loans for his four businesses. In each of those loan applications, the indictment says, Keilholz failed to disclose his ownership in the other three businesses, and made materially false and fraudulent claims in the loan applications and supporting documentation. Keilholz allegedly inflated the income of those businesses and claimed payrolls for employees who did not exist or no longer worked for him. Additionally, the indictment says, Keilholz applied for a $7,818,705 PPP loan for TRK Valpo but the loan was denied by the bank.
Ultimately, Keilholz was granted a $1,706,260 PPP loan for TRK Construction, a $3,618,815 PPP loan for TL Builders, a $3,903,857 PPP loan for Project Design, and a $3,202,000 PPP loan for TRK Valpo.
He was denied a second round of loans that would have been capped at $2 million each.
The IRS also shared that the indictment includes a "forfeiture allegation," which would necessitate that Keilholz and his wife -- who was falsely identified as an employee of his companies during the scheme -- surrender five properties in Jefferson City, one property in Valparaiso, Indiana, one property in La Porte, Indiana, and six vehicles to the federal government.
The prosecutor in the case is Supervisory Assistant U.S. Attorney Michael S. Oliver.
What do you think about this bank fraud scheme?
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