Georgia Woman Pleads Guilty to Bank Fraud in COVID-Relief Fraud Scheme

According to a Department of Justice (DOJ) press release dated August 18, 2021, Hunter VanPelt, aka Ellen Corkrum, 49, pleaded guilty to perpetrating a scheme to fraudulently obtain more than $7.9 million in Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

Through her scheme, she submitted six fraudulent PPP loan applications to four different lenders on behalf of entities she owned or controlled, namely: Georgia Nephrology Physician Associated, United Healthcare Group & Co., Nephrology Network Group LLC, First Corporate International, Corkrum Consolidated Inc., and Kiwi International Inc. She received more than $6 million in PPP loan funds.

Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division said of the crime, “PPP funds should be reserved for legitimate businesses and their hard-working employees who have suffered economically as a result of the pandemic. The Department of Justice is committed to ensuring that anyone who takes advantage of COVID-19 relief programs will be brought to justice.”

VanPelt lied about the number of employees and falsified payroll expenses on each application. She submitted fraudulent tax records, bank statements, and payroll reports to secure PPP loans. Three of her applications were under the name Ellen Corkrum and the other three were under Hunter VanPelt.

VanPelt pleaded guilty to bank fraud. She is scheduled to be sentenced on January 4, 2022, and faces a maximum penalty of 30 years in prison.

Special Agent in Charge Edwin S. Bonano of the Federal Housing Finance Agency, Office of Inspector General said, “To support small and community banks, the Federal Home Loan banks can accept Paycheck Protection Program (PPP) loans as collateral when making loans to their members. The Office of Inspector General is proud to work with our partners in law enforcement to prevent, detect, and deter attempts to perpetrate fraud in the Federal Home Loan Bank System and steal the assistance intended for small business owners and employees under this important part of the CARES Act.”