London, Kentucky, November 26, 2025
Joshua Pennington, 51, of London, Kentucky, received a 22-month prison sentence for laundering funds obtained through fraudulent Economic Injury Disaster Loans and Paycheck Protection Program loans. Between May 2020 and June 2021, he submitted six false loan applications, resulting in over $1 million in approved loans, which were then misused for personal expenses. His co-defendant, Nicole Pennington, is awaiting her sentencing in January 2026. This case highlights ongoing efforts to combat COVID-19 relief fraud in the U.S.
London Man Sentenced for Money Laundering Conspiracy Involving COVID Relief Loans
London, Kentucky – Joshua Pennington, 51, of London, Kentucky, was sentenced on October 17, 2025, to 22 months in prison for conspiring to launder funds obtained through fraudulent Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) loans.
Details of the Fraudulent Scheme
Between May 2020 and June 10, 2021, Pennington and his co-defendant, Nicole Pennington, submitted six false loan applications to the Small Business Administration (SBA), resulting in the approval of $1,090,398.35 in EIDL and PPP funds. These applications contained materially false statements regarding the nature and scope of their businesses. The funds were laundered through transactions exceeding $10,000, which were used for personal expenses, including home renovations, plastic surgery, a Viking River Cruise trip, vehicle purchases, and debt repayments.
Legal Proceedings and Sentencing
Joshua Pennington pleaded guilty to the charges, and on October 17, 2025, U.S. District Judge Claria Horn Boom sentenced him to 22 months in prison. Under federal law, Pennington is required to serve 85% of his sentence. Upon release, he will be under the supervision of the U.S. Probation Office for two years. Nicole Pennington is scheduled for sentencing on January 27, 2026.
Background on COVID-19 Relief Fraud Enforcement
In response to the COVID-19 pandemic, the U.S. government introduced relief programs such as the EIDL and PPP to support businesses. However, these programs have been susceptible to fraudulent activities. In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to enhance efforts in combating and preventing pandemic-related fraud. This task force collaborates with various agencies to investigate and prosecute fraudulent actors and assists in administering relief programs to prevent fraud.
Reporting COVID-19 Fraud
Individuals with information about attempted fraud involving COVID-19 relief programs can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form.
Frequently Asked Questions
- What was Joshua Pennington sentenced for?
- Joshua Pennington was sentenced for conspiring to launder funds obtained through fraudulent Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) loans.
- How much money was involved in the fraudulent scheme?
- The fraudulent scheme involved the approval of $1,090,398.35 in EIDL and PPP funds through six false loan applications.
- What were the funds used for?
- The funds were laundered through transactions exceeding $10,000 and used for personal expenses, including home renovations, plastic surgery, a Viking River Cruise trip, vehicle purchases, and debt repayments.
- When is Nicole Pennington’s sentencing scheduled?
- Nicole Pennington is scheduled for sentencing on January 27, 2026.
- How can I report COVID-19 relief fraud?
- Individuals can report COVID-19 relief fraud by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form.
| Key Feature | Details |
|---|---|
| Defendant | Joshua Pennington, 51, of London, Kentucky |
| Sentence | 22 months in prison, serving 85% under federal law |
| Co-Defendant | Nicole Pennington, sentencing scheduled for January 27, 2026 |
| Fraudulent Scheme | Six false loan applications resulting in $1,090,398.35 in EIDL and PPP funds |
| Use of Funds | Personal expenses including home renovations, plastic surgery, cruise trip, vehicle purchases, and debt repayments |
| Reporting Fraud | Call NCDF Hotline at 866-720-5721 or visit the NCDF Web Complaint Form |
Now Happening on X
- @allisonmpreiss (December 5, 2024): The CFPB is sending nearly $2 billion in checks to over 4 million consumers scammed by Lexington Law and CreditRepair.com, funded by civil penalties from the companies without using taxpayer dollars. View on X
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- @JeshuaTLauka (November 22, 2025): Ongoing COVID fraud cases continue with the co-founder of a PPP lender service provider sentenced for a $63M relief fraud scheme. View on X
- @Zayphar (November 22, 2025): Another example of COVID fraud as the co-founder of a Paycheck Protection Program service is sentenced for a $63M scheme. View on X
- @Global_Occupant (November 23, 2025): Wondering about the extent of PPP fraud, estimated in hundreds of billions, and calling for more accountability in tracking down criminals. View on X
- @RoarShar6064 (November 22, 2025): COVID was a massive fraud on Americans, highlighted by the sentencing of a PPP service co-founder for a $63M relief fraud. View on X
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