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Date: 05-26-2023
Case Style:
Case Number: 1:23-cr-86 and 1:23-cr-91
Judge: Claude M. Hilton
Court: United States District Court for the Eastern District of Virginia (Fairfax County)
Plaintiff's Attorney: United States Attorney’s Office in Alexandria
Defendant's Attorney:
Description: Alexandria, Virginia criminal defense lawyer represented Defendant charged with engaging in a joint scheme to defraud banks and the Small Business Administration of over $7 million in COVID relief funds.
According to court documents, from approximately April 2020 to March 2021, Bennie Earl Magee, 54, falsified payroll records, created fake IRS business tax returns, and submitted to lenders and the SBA falsified revenue reports of multiple companies to obtain over $7 million in PPP and EIDL loans for himself and others. Gilcher, 45, obtained $1.4 million of the total, but wrote checks back to Magee’s company, Bull Run Capital, totaling approximately $620,000. Magee used the PPP funds to invest in crypto currency, home renovations, to purchase vehicles, and to pay other personal expenses.
Magee and Gilcher are scheduled to be sentenced on August 25. Magee faces a up to 20 years in prison, while Gilcher faces up to five years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division; and Brian Miller, Inspector General for the Special Inspector General for Pandemic Recovery (SIGPR), made the announcement after Senior U.S. District Judge Claude M. Hilton accepted the plea.
Assistant U.S. Attorneys Russell L. Carlberg and Kathleen Robeson are prosecuting the case.
This case was investigated by an agent assigned to the Pandemic Response Accountability Committee (PRAC) Fraud Task Force. The PRAC was established to serve the American public by promoting transparency and facilitating coordinated oversight of the federal government’s COVID-19 pandemic response. The PRAC’s 21 member Inspectors General identify major risks that cross program and agency boundaries to detect fraud, waste, abuse, and mismanagement in the more than $5 trillion in COVID-19 spending. The PRAC Fraud Task Force brings together agents from 16 Inspectors General to investigate fraud involving a variety of programs, including the Paycheck Protection Program. Task force agents who are detailed to the PRAC receive expanded authority to investigate pandemic fraud as well as tools and training to support their investigations.
18:1343 and 2 Wire Fraud Affecting a Financial Institution
(1)
Outcome: 05/26/2023 2 Pretrial Services Bond REPORT (Initial Pretrial Services Bond Report) (SEALED - government and defense counsel) as to Bennie Earl Magee. (Ayala, Emerita) (Entered: 05/26/2023)
05/26/2023 3 NOTICE OF ATTORNEY APPEARANCE Kathleen Robeson appearing for USA. (Robeson, Kathleen) (Entered: 05/26/2023)
05/26/2023 4 WAIVER OF INDICTMENT by Bennie Earl Magee (tarm, ) (Entered: 05/26/2023)
05/26/2023 5 INFORMATION as to Bennie Earl Magee (1) count(s) 1. (tarm, ) (Entered: 05/26/2023)
05/26/2023 6 Minute Entry for proceedings held before District Judge Claude M. Hilton: Plea Agreement Hearing as to Bennie Earl Magee held on 5/26/2023. US appeared through: Russell Carlberg and Kathleen Robeson. Deft appeared w/counsel Stuart Sears. Deft PG to the Criminal Information filed. Plea entered by Bennie Earl Magee (1) and Accepted; Guilty Count 1. Deft referred to PO for PSIR and Sentencing set for 8/25/2023 at 10:00 AM in Alexandria Courtroom 800 before District Judge Claude M. Hilton. Deft placed on bond w/the conditions set forth in the pretrial services report with the exception that the condition that the defendant have no contact with any codefendant, potential witness, or victim of the charged offense unless with counsel, is with the exception of JS, as long as they dont talk about the facts of the case.(Court Reporter J. Egal.)(tarm, ) (Entered: 05/26/2023)
05/26/2023 7 PLEA AGREEMENT as to Bennie Earl Magee (tarm, ) (Entered: 05/26/2023)
05/26/2023 8 Statement of Facts as to Bennie Earl Magee (tarm, ) (Entered: 05/26/2023)
05/26/2023 9 ORDER Setting Conditions of Release as to Bennie Earl Magee (1); PR Bond w/conditions. Signed by District Judge Claude M. Hilton on 5/26/23. (tarm, ) (Entered: 05/26/2023)
Plaintiff's Experts:
Defendant's Experts:
Comments: