Manassas Man Sentenced For $7M COVID Fraud Scheme: Prosecutors

MANASSAS, VA — A Manassas business owner was sentenced to 5 years in prison for his role in a COVID fraud scheme, the U.S. Attorney's Office announced.

The Manassas man, 55-year-old Bennie Earl Magee, pleaded guilty in May. He could have faced up to 20 years in prison, based on federal sentencing guidelines.

Investigators said Magee ran the scheme from April 2020 through March 2021. He created false payroll statements, forged IRS business tax returns, and false business reports.

According to prosecutors, he used the forged financial documents to gain $7 million in paycheck protection program and economic injury disaster loans.

Magee used the fraudulently obtained money to buy cryptocurrency, finance home renovations, and purchase vehicles, authorities said.

"At a time when many small businesses were trying to keep their doors open and support their employees, these fraudsters chose to lie and steal from small business relief programs to line their own pockets," Inspector General Michael E. Horowitz said in a news release.

Another man, 45-year-old Michael Gilcher of Bealeton, also pleaded guilty in connection with the scheme. Prosecutors claimed that Gilcher also obtained fraudulent loans but wrote checks back to Magee's company. Gilcher was sentenced to 1 year in prison.

Jessica Aber is the U.S. Attorney for the Eastern District of Virginia.

"PPP and EIDL loans were created to assist those financially affected by the COVID-19 pandemic," Aber said. "Mr. Magee and Mr. Glicher not only lied to the IRS and stole millions of taxpayer funds, but frivolously spent it on items such as vehicles and cryptocurrency. EDVA will continue to work with the SIGPR and other law enforcement partners to prosecute those who take advantage of all of us."