SACRAMENTO, Calif. — Kevin Lee Co, 51, of Rocklin, pleaded guilty currently to distributing bogus statements to a fiscal establishment, U.S. Legal professional Phillip A. Talbert announced.

In accordance to courtroom paperwork, on Dec. 8, 2016, Co pleaded responsible to wire fraud and revenue laundering for embezzling about $4.8 million from his previous employer, Holt of California. Co utilized the revenue he embezzled to obtain, amongst other issues, luxury cars, residence household furniture, and NFL soccer and NBA basketball year tickets. While out of custody and awaiting sentencing on all those rates, Co defrauded federally insured economic institutions by submitting wrong statements to qualify for financial loans that ended up component of the Paycheck Protection Program.

Co was the sole owner of Apollo HP Inc., a Rocklin-primarily based organization that sells turbines, home windows, and residential solar panels. Among April 2020 and January 2021, Co used for and received Paycheck Security System loans for his company. The personal loan applications essential him to disclose his pending criminal expenses and responsible pleas. Even so, in his bank loan apps, Co hid the fact that he had pleaded responsible to wire fraud and dollars laundering fees in get to induce two banking institutions to approve financial loans for his organization. As a final result of Co’s untrue statements, fiscal establishments suffered a overall loss of $530,552.

This situation was the item of an investigation by the IRS Legal Investigation, the Federal Bureau of Investigation, and the Federal Reserve Board and Buyer Money Defense Bureau – Office of Inspector General. Assistant U.S. Legal professional Brian A. Fogerty is prosecuting the scenario.

Co is scheduled to be sentenced by U.S. District Judge Troy L. Nunley on Aug. 18, 2022. On the bogus statements cost, Co faces a optimum statutory penalty of 30 decades in jail and a $1 million fantastic. Simply because the offense was dedicated when on release pending sentencing, the court may possibly impose an further consecutive sentence of up to 10 yrs in prison. Co also faces a highest statutory penalty of 20 a long time in jail and a $250,000 great for the wire fraud cost. For the dollars laundering cost, Co faces a most statutory penalty of 20 several years in prison and a wonderful of up to $500,000, or two times the price of the residence involved in the revenue laundering transactions. The true sentence, nonetheless, will be established at the discretion of the court just after consideration of any relevant statutory factors and the Federal Sentencing Recommendations, which acquire into account a number of variables.