David Kurt Schneider and Kelly Jo Driver have been sentenced for their involvement in COVID-19 relief fraud, as announced by Acting United States Attorney Richard R. Barker. Schneider, from Kennewick, Washington, received a 12-month prison sentence, while Driver from South Carolina was given five years of probation. Both were ordered to pay restitution amounting to $121,762 by Chief United States District Judge Stanley A. Bastian.
A co-defendant in the case, Leif Gerald Larsen from Pasco, Washington, has also pleaded guilty to wire fraud and is scheduled for sentencing on July 30, 2025.
The charges stem from fraudulent activities related to the Coronavirus Aid, Relief, and Economic Security (CARES) Act enacted on March 27, 2020. This act provided various programs designed to help small businesses affected by the pandemic. Among these were the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program.
Court documents reveal that Schneider, Driver, and Larsen submitted false funding applications under several business names including Larsen Firearms and others owned by Schneider such as Solar Mobility LLC and RealNZ Water LLC. Driver played a role in creating fake payroll and tax forms to support these applications. For her efforts in this scheme, she received a percentage of the disbursed funds.
In total, they managed to obtain at least $292,000 through fraudulent means via PPP and EIDL programs while attempting to secure an additional $560,000 which was not approved.
Acting U.S. Attorney Rich Barker emphasized that “pandemic relief programs were created to support workers, small businesses, and communities struggling through an unprecedented crisis – not to enrich fraudsters.” He further stated that those who misuse government aid will be held accountable.
Tim Larson from SBA OIG’s Western Region echoed this sentiment stating that “those who exploited SBA’s pandemic relief programs for personal gain will be held accountable.” He highlighted ongoing efforts with law enforcement partners to protect taxpayer funds.
The investigation was conducted by the Eastern District of Washington COVID-19 Fraud Strike Force along with FBI and SBA OIG assistance. The prosecution team included Assistant United States Attorneys Jeremy J. Kelley and Frieda K. Zimmerman.
