George Thacker, the county executive for Rhea County for the past 12 years, on Thursday afternoon pleaded guilty in Federal Court to one count of wire fraud.
Thacker, 59, of Spring City, Tennessee, appeared before Judge Charles Atchley in Chattanooga.
He pleaded guilty related to the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. Officials said, "The CARES Act is a federal law designed to provide emergency financial assistance to the millions of Americans suffering the economic effects brought about by the COVID-19 pandemic. Among other things, it authorized billions of dollars in forgivable loans to small businesses through programs referred to as the Paycheck Protection Program (“PPP”) and the Economic Injury Disaster Loan (“EIDL”) Program. The funds from those programs were intended to ensure that small businesses suffering economic impacts related to the coronavirus pandemic could continue to operate and pay expenses, including their employees’ wages.
"According to court filings, Thacker applied for and received over $600,000 in PPP and EIDL loan proceeds. When applying for the loans, Thacker falsely certified that he would use the funds to pay employees and for other operating expenses. Instead of using the money to its intended purpose,
"Thacker used the funds for his own enrichment, among other things, purchasing cryptocurrency and funding his personal investment accounts. This investigation was led by the United States Secret Service."
Sentencing has been set for Sept. 22 before Judge Atchley,
Thacker faces a maximum of 20-year prison sentence; $250,000 in fines; and supervised release for three years.
Assistant United States Attorney Kyle J. Wilson represented the United States.
Lee Davis represents George Thacker.