2 from Tri-Cities indicted for COVID relief fraud

SPOKANE – Eastern Washington U.S. Attorney Vanessa R. Waldref announced Friday that a federal grand jury has indicted three individuals for fraud in connection with COVID-19 relief funding. The indictment charges Kelly Jo Driver, of South Carolina, David Kurt Schneider of Kennewick, and Leif Gerald Larsen of Pasco, with conspiracy to commit wire fraud and bank fraud, wire fraud, bank fraud, and false, fictitious, or fraudulent claims. Additionally, David Kurt Schneider is charged with money laundering.

The indictment alleges that the three fraudulently obtained at least $250,000 in CARES Act funding through the Paycheck Protection Program and Economic Injury Disaster Loan programs, and submitted fraudulent applications seeking at least an additional $1,000,000 in CARES Act funding that were ultimately not approved. The indictment alleges that as part of the conspiracy, all three defendants submitted false information to the Small Business Administration and participating PPP lenders regarding gross revenues, number of employees, and amount spent on payroll in an attempt to obtain CARES Act funds to which they were not otherwise entitled.

The indictment alleges that defendants submitted funding applications in the name of Larsen Firearms, owned by Leif Gerald Larsen, as well as Solar Mobility LLC, RealNZ Water LLC, and Tempest Tactical Solutions, LLC, all owned by David Kurt Schneider.  The indictment alleges that Kelly Jo Driver created fraudulent payroll and tax forms that were submitted in support of the applications, and that, for her part in the scheme, she received 10 percent of the funds disbursed by the SBA and participating lenders.

The fraud charges carry sentences of up to 30 years in federal prison as well as restitution for fraudulently-obtained funds.

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Elkhorn Media Group

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