Six People Out of Southwest Virginia Plead Guilty To Defrauding the United States Out of More Than One Million Dollars

Six people including employees and their wives of an industrial electronics store out of Lebanon, Virginia have pleaded guilty to defrauding the United States out of over $1 million dollars.

According to U.S Attorney Thomas Cullen, Harold and Hollie Kennedy, the owners of Kennedy Industrial Electronics, along with Danny and Geneva Hill, as well as Gerald and Teena Stevens, were the six that pled guilty in the defraud scheme in U.S District Court in Abingdon. Harold and Hollie Kennedy pled guilty to one count of conspiracy to defraud the United States and one count of failing to pay over and collect employment taxes.

Danny Hill pled guilty to to one count of conspiracy to defraud the United States. Geneva Hill pled guilty to one count of causing to be made a false representation concerning the requirements of the Social Security Act. Gerald Stevens pled guilty to one count of conspiracy to defraud the United States. Teena Stevens pled guilty to one count of causing to be made a false representation concerning the requirements of the Social Security Act.

One additional individual, Ricky Matney, was indicted on one count of conspiracy to defraud the United States and two counts of providing false information to the Social Security Administration. Court documents say the payroll tax scheme reportedly went on from 2001 to 2015, with Harold and Hollie Kennedy failing to report around $148,000 in employment taxes. These taxes were owed for hours worked by employees Danny Hill, Gerald Stevens, and Ricky Matney.

These three were receiving disability benefits from Social Security, and could not earn additional income unless they reported it. Instead of reporting, checks were issued to Geneva Hill, Teena Stevens, and others. The amount of disability benefits defrauded ranged around $907,000.

Danny Hill, Gerald Stevens, Ricky Matney, Harold Kennedy, and Hollie Kennedy could each face up to five years in prison on the conspiracy charge.