A former high-flying CEO is now grounded with a 30-month prison sentence after swindling nearly $2 million in COVID-19 relief funds. Gregory Scott Keough, 57, of Wellington, Florida, was handed the punishment for crafting a web of lies in loan applications meant to aid struggling businesses during the pandemic, the U.S. Department of Justice announced.
According to court documents, Keough, in cahoots with attorney Derek Acree, faked an EIDL application and three PPP loan applications under the veil of their own companies between March and August 2020. These fraudulent moves were attempts to game the system put in place by the CARES Act, and they resulted in Keough pocketing approximately $1.92 million. In addition, he filled out four more deceptive loan applications, bagging himself an extra $309,555. The applications contained false information on employee counts, payroll expenses, and gross revenues for entities controlled by Keough, which included a string of companies like National Financial Holdings Inc. and Grupo Keough LLC.
Keough lavishly spent the funds on personal indulgences such as storm windows for his residence, high-flying private jet jaunts, and tuition fees for private schooling. The DOJ's press release detailed how the ex-CEO indulged in a lifestyle funded by taxpayers' money meant for the economic casualties of a global health crisis.
Keough's plea of guilty to two counts of wire fraud and one count of money laundering came in November last year. On top of his prison term, he has been ordered to pay back the hefty sum of $1.92 million in restitution. His co-conspirator Acree didn't escape the law either; he was sentenced to 41 months behind bars back in January 2023 after a guilty plea to conspiracy to commit wire fraud. The restitution was paid jointly by the pair, said the DOJ.
U.S. Attorney Markenzy Lapointe and FBI Special Agent in Charge Jeffrey B. Veltri led the announcement of Keough's sentencing. The case was a result of diligent investigations by the FBI's Miami Field Office, with support from the Palm Beach County Sheriff’s Office PPP Fraud Task Force, and the Office of State Attorney Dave Aronberg for the 15th Judicial Circuit – Palm Beach County. Assistant U.S. Attorney Robin W. Waugh took the helm in prosecution, while Joshua Pastor handled asset forfeiture.
Those who have information about attempted COVID-19 fraud can reach out to the Department of Justice’s National Center for Disaster Fraud Hotline or file a complaint through their online form. This sentencing is part of a broader effort by the DOJ's COVID-19 Fraud Enforcement Task Force, established in May 2021, to clamp down on pandemic-related financial fraud and bring criminals to justice.
