United States Attorney Jonathan S. Ross | U.S. Department of Justice
A federal judge has sentenced Kyle Nathan Carlisle, a 39-year-old resident of Phenix City, Alabama, to 92 months in prison for wire fraud and money laundering. The charges stem from loans obtained through the Coronavirus Aid Relief and Economic Security (CARES) Act and the Economic Injury Disaster Loan (EIDL) program. Acting United States Attorney Kevin Davidson announced the sentencing on January 6, 2025. After serving his prison term, Carlisle will be under supervised release for three years.
The CARES Act, enacted in March 2020, aimed to provide financial assistance to Americans affected by the COVID-19 pandemic. It established the EIDL program to support small businesses with working capital for expenses such as payroll and rent. According to court records, between July 2020 and April 2021, Carlisle applied for 23 EIDL loans online, including duplicates. Five of these applications were funded.
Carlisle admitted to making false statements regarding business revenue, employee numbers, and felony convictions within five years on his applications. Records showed he had two felony convictions in Russell County, Alabama from 2016. He also submitted forged documents like fake business licenses. Through this scheme, Carlisle obtained approximately $600,000 across four applications. Some funds were recovered before clearing his accounts. The total amount sought was $3,470,832.
Carlisle was also convicted of money laundering for using illegal proceeds on personal expenses such as purchasing a vehicle. In addition to imprisonment, he must pay $547,846.54 in restitution to the Small Business Administration and forfeit an equal amount to the U.S. government.
“Kyle Carlisle fabricated lies and forged documents in a scheme to divert taxpayer money for his own self-enrichment,” said Acting U.S. Attorney Davidson. “The EIDL program was intended to provide relief to actual struggling businesses during a pandemic that created an enormous economic burden on the entire country."
The FBI Mobile Field Office led the investigation with help from the Small Business Administration Office of Inspector General and the Alabama Department of Labor. Assistant United States Attorney J. Patrick Lamb prosecuted the case.
Reports of attempted COVID-19-related fraud can be made via the Department of Justice’s National Center for Disaster Fraud Hotline or its web complaint form.
