August 16, 2020
Charges Brought Against Gay D.C. Man Who Allegedly Bilked Gov't COVID Program of Millions
Kilian Melloy READ TIME: 2 MIN.
A former Catholic archdiocese official who reportedly embezzled nearly a half million dollars from the church over an eight-year period is also facing charges that allege he bilked the U.S., government's COVID-19 relief program for millions.
41-year-old Kenneth Gaughan, together with another individual, were charged with falsifying documents and defrauding the Paycheck Protection Program for just over $2 million, filing 11 false claims and then using the proceeds to buy a house, a boat, and a car, NPR reports.
Local news outlet WTOP offered more details;
"Gaughan, according to prosecutors, applied to Small Business Administration lenders on behalf of multiple companies, to register emotional support animals."
In a news release, the U.S. Department of Justice said:
"He used those funds, in part, to purchase a $300,000 yacht, a $1.13 million rowhouse, and a $46,000 luxury sports sedan.
Gaughan was also arrested on an indictment unsealed today, charging him for a separate embezzlement scheme relating to his alleged theft of over $472,000 in funds from the Catholic Archdiocese of Washington, D.C. ("ADW"), where he was previously employed as Assistant Superintendent."
The release noted that "The complaint alleges, through the scheme, Gaughan sought and received approximately $2.1 million in PPP and EIDL loans through applications to SBA lenders on behalf of multiple companies, all falsely purporting to register emotional support animals."
Acting U.S. Attorney Michael R. Sherwin blasted the purported scheme, saying, "This Office will not allow fraudsters to steal taxpayer money intended to help small businesses that are currently struggling as a result of the COVID-19 pandemic."
Gaughan faces a dozen counts in the separate case in which he's accused to embezzling from the Catholic church. In that case, reports WUSA 9, Gaughan "faked invoices for 'anti-bullying, crisis intervention, and professional development programs at the approximately 95 Catholic schools' " through several companies he owned. News reports said Gaughan did not disclose his ownership of those companies to the archdiocese.