A Lexington, Ky., RV dealer pleaded guilty Thursday to a federal conspiracy charge, admitting he filed $1.3 million in fake payroll protection loans for employees who did not exist.
Randall Blankenship Jr., who owns Bluegrass RV, could face up to 20 years in prison for the scheme to defraud the federal Small Business Administration (SBA) of $1,323,829 in loans. Blankenship, 49, of Woodford County, pleaded guilty to one count of conspiracy to commit wire fraud in U.S. District Court in Lexington.
According to federal prosecutors, in early April 2020, Blankenship applied for four loans for Blankenship RV Finance Solutions LLC, RSGG Properties LLC, RSGG Holdings LLC and RSGG Investments LLC. Blankenship has control of all four of those limited liability companies, according to court documents. Blankenship and his accountant filed false documents to make it look like those companies had employees. The accountant is only listed by initials in court documents. Some of the money went to pay expenses at Bluegrass RV, which had already received a payroll protection loan, according to court documents. But some of the $1.3 million went to pay off Blankenship’s gambling debts and to buy real estate, federal prosecutors said in court on Thursday.
The federal Payroll Protection Program, often referred to as PPP, was started in April 2020. The program allowed businesses that shut down during the coronavirus pandemic to receive loans and keep their employees paid. If the employees were still employed after eight weeks, the loan was forgiven. The program ended May 31.
Brandon Marshall, Blakenship’s lawyer, told U.S. District Judge Karen Caldwell that Blankenship is in the process of selling Bluegrass RV, which has a location on North Broadway in Lexington and a second location in Georgetown. The sale of the dealership will allow Blankenship to repay the $1.3 million, Marshall said. Blankenship will be sentenced on March 17 in Lexington. Marshall declined to comment after Thursday’s court hearing.
Read the full story from the Lexington Herald Leader here.
