Here's how Topekan Tommy Hendrickson defrauded a federal COVID relief program of $237,897

A plea agreement filed last month tells how Topeka businessman and Salina Speedway promoter Tommy Hendrickson bilked a federal COVID relief program out of almost $238,000.

Hendrickson pleaded guilty Feb. 14 in federal court in Topeka to two counts of the theft of more than $1,000 from the U.S. government. Sentencing has been set for 9:15 a.m. May 22.

The agreement says Hendrickson defrauded the Paycheck Protection Program, which the federal government created during the COVID pandemic to make taxpayer-funded loans to help qualifying businesses pay employees and cover other costs. Only businesses with employees could receive the loans, which the government later forgave.

A federal charge of receiving stolen government money in the amount of more than $1,000 remains pending against Bill Nissen, Hendrickson's co-defendant.

What does the plea agreement say?

Hendrickson and Nissen held ownership interests in Topeka-based Offender Monitoring Services, a bail bond company, state business entity records show. Hendricks owned SSW Promotions LLC, which had offices in Topeka and Salina. Both companies have forfeited their right to do business in Kansas for not filing a timely annual report.

Hendrickson admits in the plea agreement that he applied for and received a PPP loan of $93,356 in February 2021 on behalf of SSW Promotions to help cover costs regarding 11 employees, when he actually had none. The loan was forgiven in August 2021.

Later in February 2021, Hendrickson admitted, he applied for and received a PPP loan of $144,541 on behalf of Offender Monitoring Services to help cover costs regarding 14 employees, when it actually had none. That loan was also forgiven in August 2021.

Hendrickson and Nissen were prosecuted after investigators found no record of either company's paying any wages to employees for the time period involved.

Hendrickson's plea agreement said, "The defendant retained $134,541 and provided B.N. $10,000 in exchange for B.N. allowing the defendant to use B.N.'s name on the PPP application."

The FBI in August filed a civil asset forfeiture case against Hendrickson in U.S. District Court in Wichita seeking forfeiture of a John Deere 770CH road grader and a Polaris utility vehicle, which it had seized last June in Salina.

In the affidavit it filed seeking forfeiture, the FBI alleged Hendrickson used some of the SSW Promotions' PPP loan proceeds to buy the motor grader for about $48,000 in Park City and some of the Offender Monitoring Services' PPP loan proceeds to buy the Polaris for about $19,000 in Olathe,

Hendrickson's plea deal calls for sentence recommendation on 'low end'

Hendrickson was charged Oct. 25 in federal court with two counts of the theft of U.S. government money in the amount of more than $1,000.

Nissen was charged Dec. 7 in federal court with one count of receiving stolen government money in the amount of more than $1,000 and converting it to his own use while knowing it was stolen.

Records show both were released from custody, Hendrickson in November and Nissen in December, on orders requiring them to comply with conditions that included appearing at planned status conferences in their cases.

Nissen last appeared at a Feb. 14 status conference, where another status conference in his case was set for April 10.

Meanwhile, Christopher M. Joseph, an attorney representing Hendrickson, notified the court Jan. 8 that he intended to enter a plea. Hendrickson then pleaded guilty Feb. 14 to both charges he faced, court records show.

Hendrickson agreed to pay restitution totaling $237,987, the amount that was stolen, but asked that he and Nissen share joint liability for $10,000 of that.

Henderson also agreed to forfeit ownership of the motor grader and Polaris — which had already been sold for $29,634.75, and $15,292.40, respectively — with the total of $44,927.15 going to help pay off his restitution costs.

Hendrickson agreed in the plea agreement to accept whatever sentence is imposed upon him using federal sentencing guidelines.

Hendrickson's plea agreement calls for prosecutors to not pursue any further charges against him regarding the case involved and to recommend a sentence of not more than the "low end" of the applicable federal sentencing guidelines range.

Sentencing guidelines pinpoint a defendant's presumptive sentence using sentencing grids, which take into account the defendant's "criminal history score" and the severity of his or her new conviction or convictions.

Because of Hendrickson's "acceptance of responsibility" and his having "timely notified the government of his intention to enter a plea of guilty," the plea agreement includes terms allowing for potential reductions in the severity level of the crime to which pleaded guilty.

Contact Tim Hrenchir at threnchir@gannett.com or 785-213-5934.

This article originally appeared on Topeka Capital-Journal: Plea agreement tells how Topekan stole money from COVID relief program