A Madison County couple pleaded guilty today in federal court to defrauding the Paycheck Protection Program of COVID-19 relief funds of nearly $1.2 million.

U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Carlton L. Peeples announced the plea by John D. Scoggins, 43, and Jennifer C. Scoggins, 37, both of Huntsville.

The husband and wife pleaded guilty before United States District Court Judge Madeline H. Haikala to conspiracy to commit wire fraud.

According to the plea agreement, between February and June 2021, the Scogginses defrauded the Small Business Administration by receiving fraudulent PPP loans on behalf of four purportedly operational businesses. 

The Scogginses submitted loan applications with falsified and fraudulent documents. 

According to prosecutors, they used the loan money for unauthorized purposes, including purchasing a home and taking a family vacation.

They could receive up to 20 years in prison.

The Federal Bureau of Investigation investigated the case. Assistant U.S. Attorney Jonathan “Jack” Harrington is prosecuting the case.