A Lexington man’s calculated deception during a time of national crisis has landed him a 24-month federal prison sentence. John A. Hopkins, 48, exploited the COVID-19 relief programs, diverting hundreds of thousands of dollars intended for struggling businesses into a web of personal expenses.
Hopkins orchestrated a sophisticated fraud and money laundering scheme spanning from April 2020 to October 2021. He relentlessly pursued funds from the Economic Injury Disaster Loan and Paycheck Protection Program, initiatives designed to be a lifeline for businesses crippled by the pandemic’s economic fallout.
The foundation of his scheme was built on a mountain of lies. Hopkins filed applications under the names of businesses he controlled – Blurock LLC and Hopkins Drywall – systematically inflating revenues and falsely claiming eligibility to maximize his payouts.
Court records reveal a staggering ten fraudulent EIDL applications, a request to inflate an existing loan, and a separate false PPP application. He even misrepresented his income as a pastor in July 2020, securing a $44,000 EIDL loan and an additional $1,000 advance.
His audacity didn’t stop there. Hopkins aggressively pursued larger sums, ultimately obtaining a $352,000 increase on an EIDL by falsely claiming additional funds were owed to him, even contacting congressional staff to bolster his fabricated narrative. A further $120,000 PPP loan for Blurock LLC was secured through continued misrepresentations.
In total, Hopkins attempted to siphon nearly $1.73 million from the relief programs, successfully obtaining approximately $517,000. This wasn’t a case of a business struggling to stay afloat; it was a deliberate and calculated theft of public funds.
The money wasn’t used to save jobs or support a struggling enterprise. Instead, it vanished into a pattern of personal indulgence – covering rent, speculative cryptocurrency investments, gifts to friends, and fueling a gambling habit.
Hopkins will be required to serve at least 85 percent of his sentence, followed by three years of supervised release under the watchful eye of the U.S. Probation Office. This outcome serves as a stark warning to others contemplating similar schemes.
The investigation, spearheaded by the Treasury Inspector General for Tax Administration and the Internal Revenue Service Criminal Investigation division, underscores the government’s commitment to pursuing pandemic relief fraud. This case was prosecuted by Assistant U.S. Attorney Kate Dieruf.
Federal officials have consistently emphasized that holding those who exploited the pandemic relief programs accountable remains a top priority. The Department of Justice established the COVID-19 Fraud Enforcement Task Force in 2021 to coordinate nationwide efforts and ensure justice is served, even as the programs themselves conclude.
Authorities continue to actively solicit tips from the public regarding suspected fraud, reinforcing the message that accountability for misuse of these vital funds will be relentlessly pursued.
