Lexington man gets prison time in federal COVID-19 loan gambling fraud scheme
A Lexington man who secured hundreds of thousands of dollars in COVID-19 relief funds through false claims is headed to federal prison, after authorities said he funneled part of the money into gambling and other personal expenses.
John A. Hopkins, 48, was sentenced Tuesday to 24 months behind bars by U.S. District Judge Gregory Van Tatenhove in Frankfort. Hopkins previously admitted he took part in a fraud and money laundering scheme involving federal pandemic relief programs designed to keep struggling small businesses afloat.
According to prosecutors, the scheme stretched from April 2020 through October 2021. During that period, Hopkins filed multiple applications for Economic Injury Disaster Loans and Paycheck Protection Program funds, programs created to stabilize businesses rocked by shutdowns and economic uncertainty.
Authorities said the paperwork he submitted was riddled with false statements. Applications were filed under business names connected to him, including Blurock LLC and Hopkins Drywall. In those filings, he overstated revenues and misrepresented eligibility in order to qualify for larger payouts.
Court records show he submitted 10 fraudulent EIDL applications, along with a request to increase a loan that had already been approved and a separate false PPP application. In July 2020, one filing inflated his income as a pastor over the previous year. That claim resulted in approval of a $44,000 EIDL loan and a $1,000 advance payment.
He later persuaded officials he was entitled to more money, obtaining a $352,000 increase on an EIDL after falsely asserting to congressional staff that additional funds were owed to him. Prosecutors also said he secured a $120,000 PPP loan for Blurock LLC using further misrepresentations.
How a Lexington man used COVID-19 relief funds for gambling
In total, Hopkins sought nearly $1.73 million in pandemic relief funds and ultimately received about $517,000, according to court documents.
Instead of using the money to support legitimate business operations, prosecutors said he diverted it to cover personal costs. Among the expenditures were rent debt payments, cryptocurrency investments, cash gifts to friends, and gambling.
Federal law requires Hopkins to serve at least 85 percent of his sentence. Once released, he will spend three years under supervision by the U.S. Probation Office.
The investigation was led by the Treasury Inspector General for Tax Administration and the Internal Revenue Service Criminal Investigation division. Assistant U.S. Attorney Kate Dieruf handled the prosecution.
Federal officials have repeatedly warned that pandemic relief fraud remains a priority. In 2021, the Department of Justice created the COVID-19 Fraud Enforcement Task Force to coordinate nationwide efforts targeting abuse of relief programs.
Authorities continue to encourage tips from the public about suspected schemes involving COVID-19 funds, saying accountability remains a focus even as the pandemic programs wind down.
Featured image: John A. Hopkins via Instagram
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