Phenix City man sentenced for $600K COVD-19 loan fraud

MONTGOMERY, Ala. (WTVM) – A Phenix City man has learned his fate after pleading guilty to wire fraud and money laundering charges related to loans he received through the Coronavirus Aid, Relief, and Economic Security Act and the Economic Injury Disaster Loan (EIDL) program.

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According to the U.S. Department of Justice (DOJ), Kyle Nathan Carlisle, 39, was sentenced Monday to serve nearly 8 years in prison (92 months). Following his sentence, Carlisle will be on supervised release for three years, officials added.

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In a press release, the DOJ stated that, according to his plea agreement and other court documents, Carlisle applied for 23 EIDL loans online between July 2020 and April 2021, many of which were duplicates. Five of the loans were ultimately funded.

Carlisle is said to have made multiple false statements and misrepresentations in his applications, including the businesses’ revenue, the number of employees, and that he had no felony convictions in the last five years.

DOJ, citing records, added that Carlisle had two 2016 felony convictions in Russell County. Carlisle admitted to submitting forged documents with the applications, including fake or altered business licenses. As a result, Carlisle received approximately $600,000 for four separate applications. Officials said part of the funding was recovered before it cleared Carlisle’s accounts.

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The total amount sought in the scheme was $3,470,832, DOJ stated. Carlisle was also convicted of money laundering for using the illegal proceeds to purchase a vehicle, among other unauthorized personal expenses.

“Kyle Carlisle fabricated lies and forged documents in a scheme to divert taxpayer money for his own self-enrichment,” said Acting U.S. Attorney Davidson. “The EIDL program was intended to provide relief to actual struggling businesses during a pandemic that created an enormous economic burden on the entire country. My office remains committed to working with our law enforcement partners to aggressively pursue those who engage in activities that threaten the integrity of government programs.”

In addition to the prison sentence, the judge ordered Carlisle to pay $547,846.54 in restitution to the Small Business Administration. He was also ordered to forfeit the same amount to the U.S. government.

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