CEO Arrested for COVID-19 Relief Fund Fraud

Visalia, September 6, 2025

News Summary

Joey Wayne Mackey, CEO of a construction firm in Visalia, faces charges for allegedly fraudulently securing over $4 million in COVID-19 relief funds. Accusations include submitting false applications for the Paycheck Protection Program with inflated employee numbers and payroll costs. Mackey reportedly laundered the funds through fabricated payroll payments to family members while investing in real estate. If convicted, he could face up to 30 years in prison and a $1 million fine, highlighting ongoing concerns of fraud related to COVID-19 assistance programs.

Visalia – Joey Wayne Mackey, a 45-year-old CEO of a Visalia construction company, was arrested on a federal complaint on Friday for allegedly fraudulently securing over $4 million in COVID-19 relief funds. This arrest, announced by U.S. Attorney Eric Grant, stems from accusations that Mackey submitted false applications for the Paycheck Protection Program (PPP) between April and June 2020.

Mackey is said to have submitted loan applications on behalf of three businesses: Forcum-Mackey Construction Inc., JWM Inc., and Mack Aviation LLC. Prosecutors allege that these applications contained inflated figures regarding employee numbers and payroll costs to secure the PPP funds. A bank subsequently disbursed $4,082,550 based on Mackey’s fraudulent representations of his businesses.

Following the receipt of the funds, Mackey is accused of laundering the money through fabricated payroll payments made to family members, including his minor children. Reports indicate that he withdrew substantial amounts after the fraudulent payments and directed those funds towards the purchase of office parks, luxury apartments, and other investments. Investigations suggest that Mackey continued to engage in real estate acquisitions and luxury purchases funded by the fraudulent loans well into 2023.

The case against Mackey has been a collaborative effort involving the FBI, the FDIC Office of Inspector General, and the SBA Office of Inspector General. If convicted, Mackey could face a lengthy prison term of up to 30 years and a potential financial penalty of $1 million.

This incident highlights ongoing concerns regarding fraud related to COVID-19 relief efforts as government assistance programs like the PPP were implemented to help businesses survive the economic downturn caused by the pandemic. The PPP aimed to support small businesses by providing them with loans that would be forgiven if certain conditions were met, specifically the retention of employees.

As these relief programs have come under scrutiny, authorities continue to investigate cases involving fraudulent claims. The U.S. government has taken measures to combat this type of fraud, as shown in the Mackey case. Prosecutors are vigilant regarding the investigation and pursuing justice for misappropriated taxpayer funds.

Key Points of the Allegations

• Joey Wayne Mackey, CEO of a Visalia construction firm, arrested for fraud.
• Allegations include over $4 million in fraudulent COVID-19 relief funds.
• Mackey submitted false PPP applications for three companies.
• Accused of inflating employee numbers and payroll costs.
• Loan funds allegedly laundered through family payroll payments.

Background Context

The Paycheck Protection Program was created in response to the economic crisis brought on by the COVID-19 pandemic, aiming to help small businesses retain employees and cover operational costs. However, as evident in the Mackey case, some individuals have exploited these resources for personal gain. Investigations into fraudulent claims have led to several arrests and ongoing reviews of other potential cases.

Future Implications

The enforcement of laws against fraudulent PPP claims underscores the importance of accountability, especially in times of national crisis. The outcome of Mackey’s case could set precedents for similar cases and serve as a warning against future fraudulent activities involving government assistance programs.

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Additional Resources

• GV Wire: Visalia Construction CEO Mackey Arrested
• Your Central Valley: Construction CEO COVID Relief Fraud
• KMPH: Visalia CEO Arrested for Allegedly Embezzling $4M
• Google Search: COVID-19 Paycheck Protection Program
• Encyclopedia Britannica: Paycheck Protection Program

Author: STAFF HERE PHILADELPHIA WRITER

PHILADELPHIA STAFF WRITER The PHILADELPHIA STAFF WRITER represents the experienced team at HEREPhiladelphia.com, your go-to source for actionable local news and information in Philadelphia, Philadelphia County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Mummers Parade, Philadelphia Flower Show, and Thanksgiving Day Parade. Our coverage extends to key organizations like the Greater Philadelphia Chamber of Commerce and United Way of Greater Philadelphia, plus leading businesses in telecommunications, food services, and healthcare that power the local economy such as Comcast, Aramark, and Children's Hospital of Philadelphia. As part of the broader HERE network, we provide comprehensive, credible insights into Pennsylvania's dynamic landscape.