The former mayor of Rhea County, Tennessee, was sentenced to prison for use public money to buy cryptocurrencies. George Thacker was sentenced to 33 months in prison for defrauding the federal government and misusing funds for aid against COVID-19.
According to US Justice, Thacker was stealing from the same audience he was elected by and was using his companies as a means of getting the money.
“He exploited his private business and stole over $650,000 in public funds – funds meant to help companies and workers suffering amid a pandemic once in a generation”, said the judge. According to a document published by the US Department of Justice (DOJ), between May 2020 and February 2021, Thacker filed three fraudulent claims for a total of more than $650,000 (about 3.3 million reais) in emergency aid funds.
Mayor uses public money to buy BRL 3.3 million in bitcoin, Ethereum and Gucci bags
At the time, he was mayor of Rhea County, Tennessee, and owner of Thacker Corporation, a company based in the Eastern District of Tennessee. As part of the loan application process, he said he would use the money for business purposes, such as pay your company’s rent and pay your employees’ salaries.
The then-politician, however, used the money for his own purposes, buying Bitcoin, Ethereum and other cryptocurrencies, as well as using the money to finance a life of luxury, buying bags from Gucci and vacation in Las Vegas.
George Thacker Court documents show that the former mayor used loans obtained under the CARES Act, to invest in cryptocurrencies. The CARES Act was a federal law enacted in March 2020 designed to provide emergency financial assistance to millions of Americans suffering the economic effects of the pandemic. Court files reveal that Thacker received three loans:
• US$257,800 as of May 4, 2020;
• US$150,000 as of May 16, 2020; and
• $257,800 as of February 5, 2021.
Instead of using the loans to help his company, as he had stated in the aid application documents, he put the entire amount into a personal account at Coinbasethe largest US cryptocurrency exchange.
BREAKING: Former Rhea County Executive George Thacker is sentenced to 33 months in prison, with a 3-year probation period and a requirement to pay back the $665,600 he took from PPE loans. Thacker pleaded guilty to investing CARES Act funds into a personal Coinbase account. pic.twitter.com/eMjD6cNGzS
— Samuel Peña (@SamPenaWTVC) October 6, 2022
Child abuse
In court, the former mayor made a move to try to avoid arrest, introducing 6 family and friends to speak well of him and about his “troubled” childhood, which led to his bad decision. He said he lived in an orphanage at age 12, where he was subjected to physical and sexual abuse. While he understands how a difficult past can lead to bad choices, the judge said, the nature of the federal crime, 3 separate times, weighs more, considering he was a public figure. The judge gave Thacker 60 days to appear before authorities and, in addition to paying a $15,000 fine, he must return the stolen $665,600.
“COVID-19 relief fraud is a serious crime,” said US Attorney Francis M. Hamilton III. “The Thacker fraud scheme exploited an aid program designed to alleviate the economic suffering of all American workers and businesses.”
The case of the former mayor of Rhea County is just one of hundreds being investigated by the US justice system, in what the DOJ called a “epic cheat” of COVID relief funding that has occurred since the government authorized funds to help businesses and citizens affected by the pandemic.
“Today, he is being held accountable for his actions, and the Court’s sentence must demonstrate to anyone who is tempted to follow in his footsteps that this crime has serious consequences.”
The court estimates that at least $80 billion in funds were given to fraudsters who used the money to buy luxury items such as cars, mansions, travel and, of course, cryptocurrencies.
