Manassas Man Pleads Guilty In $7M COVID Fraud Scheme: Authorities

MANASSAS, VA ? A Manassas man pleaded guilty last week for his role in a scheme that involved $7 million in fraudulent COVID relief loans, according to the U.S. Attorney's Office for the Eastern District of Virginia.

The man, 54-year-old Bennie Earl Magee, is scheduled to be sentenced on Aug. 25. He could face a maximum sentence of 20 years in prison, based on federal guidelines. The U.S. Attorney's Office noted that actual sentences are typically less than the maximum.

Investigators said Magee ran the scheme from April 2020 through March 2021. He created false payroll statements, forged IRS business tax returns, and false business reports.

According to prosecutors, he used the forged financial documents to gain $7 million in paycheck protection program and economic injury disaster loans.

Magee used the fraudulently obtained money to buy cryptocurrency, finance home renovations, and purchase vehicles, authorities said.

Another man, 45-year-old Michael Gilcher of Bealeton, also pleaded guilty in connection with the scheme. Prosecutors claimed that Gilcher also obtained fraudulent loans but wrote checks back to Magee's company.

Gilcher is also scheduled to be sentenced on Aug. 25. He faces a maximum five years in prison.