David Kurt Schneider from Kennewick, Washington, and Kelly Jo Driver from South Carolina have been sentenced for their roles in a COVID-19 relief fraud scheme. Acting United States Attorney Richard R. Barker announced that Schneider received a 12-month prison sentence, while Driver was sentenced to five years of probation. Both were ordered by Chief United States District Judge Stanley A. Bastian to pay restitution amounting to $121,762.
Leif Gerald Larsen of Pasco, Washington, a co-defendant in the case, has also pleaded guilty to wire fraud and is scheduled for sentencing on July 30, 2025.
The charges stem from fraudulent applications submitted under the Coronavirus Aid, Relief, and Economic Security (CARES) Act's Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program. These programs were designed to provide financial assistance to small businesses affected by the pandemic.
Court documents revealed that Schneider and Larsen used business entities such as Larsen Firearms and Solar Mobility LLC to submit fraudulent funding applications. Driver played a role by creating fake payroll and tax forms for these applications. She received 10% of the disbursed funds as compensation for her involvement.
The group managed to obtain at least $292,000 through fraudulent means while attempting to secure an additional $560,000 in CARES Act funding that was not approved.
Acting U.S. Attorney Rich Barker emphasized the importance of holding accountable those who misuse government aid: “Pandemic relief programs were created to support workers, small businesses, and communities struggling through an unprecedented crisis – not to enrich fraudsters.”
Tim Larson from SBA OIG's Western Region stated: “Those who exploited SBA’s pandemic relief programs for personal gain will be held accountable.” He highlighted ongoing efforts with law enforcement partners to protect taxpayer funds.
The investigation was conducted by the Eastern District of Washington COVID-19 Fraud Strike Force along with FBI and SBA OIG agents. Assistant United States Attorneys Jeremy J. Kelley and Frieda K. Zimmerman prosecuted the case.
