An Eden Prairie man's gamble with the U.S. Government's COVID relief funds has landed him a slew of federal convictions. Harold Bennie Kaeding, age 75, was found guilty of manipulating the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) Program to the tune of over $2 million, according to an announcement by U.S. Attorney Andrew M. Luger.
During the peak of the pandemic in early 2020, Kaeding exploited the economic uncertainty to secure loans using his family members' identities without their consent, and his six supposedly legitimate corporate entities were revealed to be non-compliant with tax filings and wage reporting for the 2019 and 2020 calendar years; Kaeding's trail of deception included concocting tax documents, falsifying bank statements and misleading lenders with inaccurate employee and payroll information.
Kaeding initially came away with approximately $1.64 million before the banks recouped some funds, netting him a final sum of $658,490, detailed in the U.S. Attorney's report. His lavish expenditures following this crime spree included an SUV purchase, averting his home's foreclosure, and hoarding a stash of more than $80,000 in cash; when his scheme began to unravel, Kaeding fled to Colombia but was extradited back to the U.S. to face trial.
Tried before Judge Eric C. Tostrud in U.S. District Court, the jury’s verdict on August 2, 2024, handed down Kaeding's convictions: three counts of wire fraud, three counts of aggravated identity theft, and one count of money laundering, with sentencing set for a date in the future that has yet to be determined; this case unveiled through joint investigative efforts by the FBI and IRS.
Assistant U.S. Attorneys Jordan L. Sing and Robert M. Lewis prosecuted the case, as detailed by the U.S. Attorney’s office. The far-reaching implications of Kaeding's actions pose a sobering reminder of the vulnerabilities such emergency relief programs face in times of crisis.
