(WWJ) — A Northern Michigan man could spend up to 10 years behind bars for using pandemic relief funds meant to help his medical practice on “luxury goods and vacations.”
Todd Kreykes of Kalkaska County has admitted to using COVID-19 pandemic funds for his own benefit and has agreed to plead guilty, according to U.S. Attorney for the Western District of Michigan Mark Totten.
Kreykes, 60, is charged in a felony information with theft of government property related to his use of pandemic funding. Totten’s office says Kreykes used the stolen funds to buy a Harley-Davidson motorcycle and other vehicles. He also remodeled his home and paid for vacations and other personal expenses.
“Every dollar that Todd Kreykes spent on luxury goods and vacations was one less dollar to help businesses struggling during the pandemic,” Totten said, per a press release. “This conviction can’t make up for that lost assistance now, but it can vindicate the taxpayers and show that criminals who defraud the government will be held accountable.”
In 2020 the federal government created multiple programs designed to help small businesses navigate the pandemic. Specifically in this case, authorities say Kreykes took advantage of the CARES Act Provider Relief Fund, CARES Act Rural Health Center Distribution, Rural Health Center Testing Program, and the Rural Health Clinic Vaccine Confidence Program, all of which were designed specifically to help medical providers give care during the pandemic.
Authorities say between April 2020 and November 2021 the Boardman Family Practice received more than $294,000 in relief through the various programs.
Kreykes “accepted these federal payments and attested to the accompanying terms and conditions that required the funding to be used to prevent, prepare for, and respond to the COVID-19 pandemic, COVID-19 testing and vaccination, or to reimburse the recipient for health care expenses or lost revenues attributable to the coronavirus,” according to Totten’s office.
But instead, Kreykes stole over $200,000.00 of the federal funds and “converted them to his own use” by spending the money on a new truck, a Harley-Davidson motorcycle, a camper, and other personal items and expenses. In addition to remodeling his home, he paid off personal loans, and took vacations, all in violation of the terms and conditions of the federal programs. Officials didn’t specify where Kreykes vacationed.
Kreykes has agreed to plead guilty to the felony information and, as part of a written plea agreement, has agreed to make full restitution to the applicable federal pandemic programs prior to his sentencing hearing.
“Providers who misappropriated federal funds intended to offset costs associated with medical services during the COVID-19 public health emergency showed disregard for taxpayers and the individuals relying on these vital programs,” said Mario M. Pinto, Special Agent in Charge with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG).
The U.S. Health and Human Service Office of Inspector General and the Drug Enforcement Administration investigated the case. Assistant U.S. Attorney Ron Stella is prosecuting the case.