Kansas City man pleads guilty to COVID-19 fraud

Date: Feb. 26, 2026

Contact: [email protected]

Kansas City, MO - A Kansas City, MO, man has pleaded guilty in federal court to fraudulently receiving a $487,600 Paycheck Protection Program (PPP) Loan, a program that was part of the Coronavirus Aid, Relief and Economic Security (CARES) Act.

Lorenzo Boles pleaded guilty before U.S. District Judge Greg Kays today to wire fraud and money laundering.

The purpose of the CARES Act was to provide emergency financial assistance due to the economic impact caused by the COVID-19 pandemic. The CARES Act authorized the Small Business Administration to provide PPP Loans to eligible small businesses that experienced substantial financial disruption due to the economic impact of the COVID-19 pandemic.

By pleading guilty today, Boles admitted that on April 30, 2020, a co-defendant filed an application for a PPP loan under the CARES Act for a business, Burnes Family Investments, LLC (BFI). The application listed Lorenzo Boles as 82% owner and a co-defendant as 18% owner.

The application and supporting documents submitted stated that BFI had an average monthly payroll of $195,067. A 2019 Profit and Loss Statement for BFI, submitted as part of the application, listed gross income of $3,910,582, expenses of $3,263,451, and a net profit of $647,131. Forms 941 and 944 (Employer's Quarterly and Annual Tax Reports) were also provided as part of the PPP application process. In fact, the income and expenses listed in the P&L Statement do not match the tax returns filed by Boles, the Forms 941 and 944 were never filed with the IRS, and the payments listed on the Forms were never received by the IRS.

On May 8, 2020, BFI received a $487,600 PPP loan in its bank account. Bank records show that Boles paid himself $50,000 in the month following the loan. Overall, Boles received approximately $90,000 of the PPP loan proceeds which he used for personal expenses.

Under federal statutes, Boles is subject to a sentence of up to 30 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors.

This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by Internal Revenue Service - Criminal Investigation and the Kansas City, Missouri Police Department.

IRS-CI is the law enforcement arm of the IRS, responsible for conducting financial crime investigations, including tax fraud, narcotics trafficking, money laundering, public corruption, healthcare fraud, identity theft and more. It is the only federal law enforcement agency with investigative jurisdiction over violations of the Internal Revenue Code. IRS-CI has 18 field offices located across the U.S. and maintains an international presence through attaché posts abroad.