A Wellington man has been sentenced to 30 months in prison for submitting fraudulent loan applications seeking approximately $2 million in forgivable Economic Injury Disaster Loans and Paycheck Protection Program loans.
Gregory Scott Keough, 57, was sentenced on Thursday by District Judge Donald M. Middlebrooks in West Palm Beach.
In November, he pleaded guilty to two counts of wire fraud and one count of money laundering. He also was ordered to pay $1,922,355 million in restitution.
These loans are guaranteed by the Small Business Administration under the Coronavirus Aid, Relief and Economic Security Act.
From March to August 2020, Keough and conspirator Derek Acree, an attorney from Palm Beach Gardens, submitted one fraudulent EIDL application and three fraudulent PPP loan applications on behalf of entities they both controlled, according to the U.S. Department of Justice. Of the funded loans, Keough was responsible for approximately $1,612,222.
Keough individually submitted four additional false loan applications on behalf of companies he controlled as chief executive officer. Two of those applications were funded and Keough received $309,555 in CARES Act proceeds.