Eden Prairie man found guilty of $2.1 million COVID relief fund fraud
MINNEAPOLIS — A federal jury convicted an Eden Prairie man last week for defrauding more than $2 million in COVID relief funds before fleeing the country.
Harold Kaeding, 75, was found guilty of three counts each of wire fraud and aggravated identity theft and one count of money laundering.
Court documents say that between March and May 2020, Kaeding applied for at least $2.1 million in loans through the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan Program.
Kaeding would use the names of his own family members to submit the loan applications in the names of different purported companies. He also fabricated tax documents and bank statements to make the applications appear legitimate, charges say.
Kaeding initially received around $1.6 million in fraud proceeds before the bank noticed irregularities and took back some of the funds. He ended up netting $658,490 in fraudulent money, according to court documents.
Investigators say he used the money to get his home out of impending foreclosure, buy an SUV and stockpile more than $80,000 in cash.
In early 2021, Kaeding fled to Columbia before law enforcement eventually found him and deported him back to the U.S., where he was arrested.
Kaeding's sentencing hearing has not been scheduled yet.