KC Reporter

A Joplin, Mo., man was sentenced in federal court today for two fraud schemes totaling nearly $300,000, including fraudulent loans under the Coronavirus Aid, Relief, and Economic Security (CARES) Act and a so-called “transaction reversal” bank scheme.

Deaviyon Rockett, 22, was sentenced by U.S. District Judge Roseann A. Ketchmark to five years and three months in federal prison without parole. The court also ordered Rockett to pay $260,000 in restitution.

On April 5, 2023, Rockett pleaded guilty to two counts of wire fraud. Rockett admitted that he submitted at least $119,262 in fraudulent Paycheck Protection Program loan applications. He also admitted that he engaged in a $176,007 “transaction reversal” fraud scheme.

The CARES Act aimed to provide emergency financial assistance due to the economic impact caused by the COVID-19 pandemic. It authorized the Small Business Administration to provide Paycheck Protection Program (PPP) loans to small businesses for retaining workers and maintaining payrolls as well as making mortgage interest payments, lease payments, and utility payments. Under the PPP, both the principal and interest on those loans were eligible for forgiveness.

Rockett admitted that from March 26 to May 17, 2021, he submitted six PPP loan applications using the names of other individuals that falsely claimed a business existed along with its employees and/or salaries covered through these loans. These representations were entirely false. Rockett then accessed the bank accounts of these individuals, withdrawing much of the money that had been fraudulently received and used those funds for expenses unrelated to and prohibited under the PPP loan program.

Law enforcement in Neosho and Jasper Counties was contacted in August 2022 by numerous individuals who reported that Rockett had contacted them through various media platforms. Rockett told these individuals that he was part of a business involving “transaction reversal,” promising mutual financial gain if they provided their bank account information.

Rockett accessed victims’ bank accounts to deposit fraudulent checks written on the bank accounts of Coffeyville Community College and/or Santander Consumer USA. Once deposited, banks would credit the accounts on a preliminary basis; however, these checks were not authorized or honored by either entity.

Rockett immediately withdrew either the amount of the checks or completely emptied the bank accounts before banks reversed the deposits. At least $176,007 was fraudulently withdrawn from victims' bank accounts.

This case was prosecuted by Assistant U.S. Attorney Patrick Carney and investigated by the FBI and Joplin Police Department.

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