SACRAMENTO, Calif. — Kevin Lee Co, 51, of Rocklin, was sentenced today to 10 years in prison for wire fraud, money laundering and submitting false statements to a financial institution, U.S. Attorney Phillip announced. A.Talbert.
According to court documents, on December 8, 2016, Co pleaded guilty to wire fraud and money laundering charges for embezzling approximately $4.8 million from his former employer, Holt of California. Co used the money he embezzled to purchase, among other things, luxury cars, home furnishings, NFL football and NBA basketball season tickets, and around $1 million in purchases for the online video game “Game of War”.
While not in custody and awaiting sentencing on these charges, Co defrauded federally insured financial institutions by submitting false statements to qualify for loans under the Check Protection Program of pay.
Co was the sole owner of Apollo HP Inc., a Rocklin-based company that sells residential generators, windows and solar panels. Between April 2020 and January 2021, Co applied for and received Paycheck Protection Program loans for his business. The loan applications required him to disclose his pending criminal charges and guilty pleas. However, in his loan applications, Co hid the fact that he pleaded guilty to wire fraud and money laundering charges in order to get two banks to approve loans for his business. As a result of Co’s misrepresentations, the financial institutions suffered a total loss of $530,552.
This case was the product of an investigation by the IRS Criminal Investigation, the Federal Bureau of Investigation, and the Office of Inspector General of the Federal Reserve Board of Governors and the Consumer Financial Protection Bureau. Assistant U.S. Attorney Nicholas M. Fogg prosecuted the case.