A London, Kentucky man has been sentenced to nearly two years in prison for his role in laundering money from fraudulently obtained COVID-19 relief loans. Joshua Pennington, 51, received a 22-month sentence from U.S. District Judge Claria Horn Boom on October 17 after pleading guilty to conspiracy to commit money laundering involving Economic Injury Disaster Loans and Paycheck Protection Program loans.
Court documents show that Nicole Pennington, a co-defendant in the case, submitted false information on multiple Small Business Administration loan applications intended for pandemic relief. Authorities said six of these applications were approved, resulting in more than $1 million being disbursed under false pretenses. Between May 2020 and June 10, 2021, Joshua Pennington and Nicole Pennington laundered over $1 million through transactions exceeding $10,000 each. The funds were used for personal expenses such as home renovations, plastic surgery, travel including a Viking River Cruise trip, cash withdrawals, vehicle purchases, and paying off loans and mortgages.
Nicole Pennington is scheduled to be sentenced on January 27, 2026.
Joshua Pennington is required by federal law to serve at least 85 percent of his sentence before becoming eligible for release. After serving his prison term, he will remain under supervision by the U.S. Probation Office for two years.
The sentencing was announced jointly by Paul McCaffrey, Acting United States Attorney for the Eastern District of Kentucky; Kelly K. Moening of the Treasury Inspector General for Tax Administration; and Karen Wingerd of IRS-Criminal Investigations.
The investigation was conducted by the Treasury Inspector General for Tax Administration and IRS-Criminal Investigations divisions. Assistant U.S. Attorney Brittany Dunn-Pirio prosecuted the case.
According to the Department of Justice’s COVID-19 Fraud Enforcement Task Force, established in May 2021 by the Attorney General, government agencies have coordinated efforts to investigate pandemic-related fraud schemes both domestically and internationally.
Individuals with information about suspected COVID-19 relief fraud are encouraged to report it via the National Center for Disaster Fraud Hotline at 866-720-5721 or through their online complaint form.
