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Bentonville man pleads guilty to obtaining $16.5 million by defrauding COVID relief programs

Authorities discovered evidence the man had prepared fraudulent applications for pandemic relief programs.

ARKANSAS, USA — A Bentonville man has pleaded guilty to defrauding the government for COVID-19 relief funding through various pandemic loan programs, according to the U.S. Attorney's Office of the Eastern District of Washington.

According to the U.S. Attorney's office, 37-year-old Tyler Keith Penix, formerly known as Tyler Keith Andrews, of Bentonville, defrauded the government out of $16.5 million. According to authorities, Penix admitted to preparing and submitting dozens of fraudulent applications for COVID-19 funding relief for businesses. 

The Eastern Washington COVID-19 Fraud Strike Force says this is its largest amount of money lost due to fraudulent pandemic relief applications. 

“This was an extensive and wide-ranging conspiracy that required exceptional investigative work and close coordination,” said U.S. Attorney Vanessa Waldref. 

The government created the dedicated task force in 2020 to investigate and prosecute fraud against COVID-19 relief programs. 

During the investigation, they found evidence that Penix prepared and submitted fraudulent applications to these pandemic relief programs, both for suspect companies owned by himself and others. 

Penix's sentencing is set for Jan. 11, 2024, in Spokane, Wash.

“This guilty plea sends a signal to wrongdoers that evidence of their crimes will be brought to light,” said SBA OIG’s Western Region Special Agent in Charge Weston King. 

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