RICHMOND, Va. (WRIC) — A Henrico man has pleaded guilty to defrauding the Small Business Administration by obtaining over $1.1 million in Paycheck Protection Program (PPP) loans for two defunct companies.

According to court documents, Kortney T. Kelley, 45, filed at least four fraudulent applications for PPP loans on behalf of his two non-operational companies throughout 2020 and 2021. As part of these loan applications, Kelley claimed that the two companies employed more than 140 workers and paid out over $220,000 in monthly payroll expenses. In reality, the defunct companies had no employees. Kelley also submitted forged tax returns and documentation to back up his false claims.

Kelley spent at least $142,711 in loan proceeds at casinos and transferred at least $834,077 from the loans into his personal brokerage accounts.

Kelley also defrauded other COVID-19-related assistance programs. He submitted a separate fraudulent application under the Economic Injury Disaster Loan (EIDL) program on behalf of one of his defunct companies and received $10,000 into the business’s bank account. Kelley also submitted fraudulent claims to the Virginia Employment Commission for unemployment benefits, stating that he was laid off from his job as a sales manager at a company he exclusively owned.

Kelley is scheduled to be sentenced on May 31, 2023. He faces a maximum penalty of 20 years in prison.