BIRMINGHAM, Ala. (WIAT) -- The former CEO of a local IT company is now charged with wire fraud, money laundering, and bankruptcy fraud in connection with multiple schemes.
In a 19 count indictment filed in United States District Court, Thomas Aaron Kane, owner and CEO of Keep Information Technology Simple, LLC and Keepitsimple.us, is charged with 12 counts of wire fraud related to a scheme to defraud customers, five counts of wire fraud related to a scheme to commit COVID-19 program fraud, one count of money laundering, and one count of bankruptcy fraud.
Both of Kane's businesses provided IT services and support, particularly in the healthcare industry.
The 12 counts of wire fraud to defraud customers relates to an alleged scheme ran by Kane from 2017 - 2021. Kane allegedly would place a customer's credit card or banking information on file to pay for a monthly service fee and authorized expenses. However, according to U.S. Attorney Prim Escalona, Kane would use said customer information to make unauthorized purchases and would make up excuses, such as an accounting error, when confronted about the charges.
Between 2020 - 2021, Kane also allegedly engaged in Paycheck Protection Program (PPP) fraud. The Department of Justice stated Kane lied to receive three separate PPP loans totaling more than $625,000. The justice department added that Kane attempted to receive two additional PPP loans in the name of his second business Keepitsimple.us.
Kane also allegedly used $150,000 of the PPP fund money to repay a prior victim of his unauthorized-charges scheme.
The United States Secret Service investigated the case with assistance from the Trussville Police Department. Assistant United States Attorney Ryan S. Rummage is prosecuting the case.