ST PAUL, Minn — An Eden Prairie man was sentenced to seven years behind bars for Covid relief fraud, with officials saying he applied for more than $2.1 million in funds which he spent on himself.
U.S. Attorney Andrew M. Luger announced in a press release Harold Bennie Kaeding, 75, of Eden Prairie was sentenced to more than seven years in federal prison. He was convicted of wire fraud, aggravated identity theft, and money laundering.
In the first three months of the Covid-19 pandemic, Luger said Kaeding used the name of close family members to submit loan applications for different corporate entities, that were either defunct or not in existence when the pandemic began.
Kaeding was accused of fabricating tax documents, manufacturing bank statements, and submitting records to ensure the applications appeared legitimate. He initially received $1,642,670, Luger said, but banks realized the irregularities and were able to get some of the money back.
"Among other things, Kaeding used the money to get his personal residence out of impending foreclosure, purchase an SUV, and stockpile more than $80,000 in cash," Luger said.
Kaeding was arrested in Columbia, where officials say he fled to when he learned he was under investigation. He was found guilty at a jury trial in August.
