KC Reporter

Tod Ray Keilholz, a Jefferson City, Mo. man, has pleaded guilty to a $12.4 million bank fraud scheme, including fraudulent Paycheck Protection Program (PPP) loans for four businesses. According to the news release, Keilholz admitted his guilt before U.S. Magistrate Judge Sarah W. Hays on Thursday, March 28.

Keilholz was the sole owner of TRK Construction, LLC, TRK Valpo, LLC, TL Builders, LLC, and Project Design, LLC. He engaged in the bank fraud scheme from Jan. 1, 2018, to Jan. 7, 2021. The scheme involved obtaining PPP loans by making false claims and using the funds for unauthorized purposes.

In each loan application, Keilholz failed to disclose his ownership in the other businesses and provided fraudulent information. He admitted to inflating business income, claiming payrolls for non-existent employees, and using a former employee's identity without authorization.

As a result, Keilholz received a total of $12,430,932 in PPP loans for his businesses. These funds were misused to pay off debts and expenses unrelated to the intended use of the loans. Keilholz also used the identity of a former employee in connection with one of the fraudulent loan applications.

Under the terms of his plea agreement, Keilholz must forfeit assets totaling the amount of the fraud scheme. These assets include properties, vehicles, and various luxury items. Keilholz faces a sentence of up to 40 years in federal prison without parole, along with a mandatory two-year sentence for aggravated identity theft.

The case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver and was investigated by multiple federal agencies. A sentencing hearing will be scheduled after a presentence investigation by the United States Probation Office.