Jefferson City man accused of bilking taxpayers for millions through COVID-19 loan fraud
JEFFERSON CITY, Mo. (KMIZ)
Federal prosecutors have accused a Jefferson City man of stealing millions in taxpayer money as part of a $27 million fraud scheme.
A federal grand jury indicted Tod R. Keilholz, 59, on Wednesday in Jefferson City. The indictment was unsealed Thursday, the U.S. attorney's office said in a news release. He is charged with 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.
Keilholz is also charged with 24 counts of money laundering and 10 counts of identity theft.
Federal authorities allege Keilholz's scheme included $12.4 million in COVID-19-related paycheck protection loans for four businesses. He tried to obtain other loans, as well, but was rejected, authorities say.
Paycheck protection loans were given to small businesses affected by the COVID-19 pandemic to help keep them afloat and pay employees. The forgivable loans could be used for payroll, mortgage interest payments, lease payments and utilities.
The charges allege Keilholz was the owner of four companies that received the loans: TRK Construction, LLC; TRK Valpo, LLC; TL Builders, LLC; and Project Design, LLC. Keilholz got $12.4 million in paycheck protection loans for the four businesses. In each application for loans, Keilholz failed to disclose his ownership of the other companies, inflated business income and claimed employees who didn't exist or no longer worked for him, federal authorities allege.
Keilholz allegedly used some of the money to pay off large debts he had racked up. Prosecutors allege he also claimed his wife as an employee while she worked full-time for the state. She received more than $300,000 in paycheck protection money, according to the U.S. attorney's office.
Authorities also claim Keilholz used more than $3.3 million in paycheck protection money to pay off a loan on a property in Valparaiso, Indiana.
The government has applied to the court to seize items purchased with the fraudulently obtained money, including the Indiana property, six vehicles, heavy equipment and trailers.
Keilholz was in federal custody Thursday and has a detention hearing set for Tuesday. The U.S. attorney's office says he is a flight risk, a threat to the community and might attempt to obstruct the investigation.
