LEXINGTON, Ky. — A Lexington man has pleaded guilty to federal charges after admitting he fraudulently obtained more than half a million dollars in pandemic relief loans, using some of the money to pay personal expenses and invest in cryptocurrency.
John Adam Hopkins entered his plea agreement Tuesday in U.S. District Court in Frankfort, records show. He admitted to wire fraud and money laundering, charges that carry a combined maximum penalty of 30 years in prison and fines of up to $500,000. Sentencing is set for Jan. 12, 2026, before Judge Gregory Van Tatenhove.
According to court documents, Hopkins ran his scheme between April 2020 and October 2021, exploiting federal programs created under the CARES Act to help small businesses during the COVID-19 pandemic. Prosecutors say he submitted at least 10 fraudulent Economic Injury Disaster Loan (EIDL) applications, an EIDL modification request, and one Paycheck Protection Program (PPP) loan application using companies such as Blurock LLC, Hopkins Drywall, and Jahopm.
In one application filed July 3, 2020, Hopkins falsely claimed $89,900 in revenue as a pastor to secure a $44,000 disaster loan and a $1,000 advance. He later persuaded the Small Business Administration to increase another loan to $352,000, even emailing members of Congress with fabricated information to push the request. He also obtained a $120,000 PPP loan for Blurock LLC, prosecutors said.
All told, Hopkins sought more than $1.7 million in relief funds and succeeded in securing about $517,000, according to his plea agreement.
After receiving the money, Hopkins made multiple transactions over $10,000, including withdrawals, transfers, debt payments, rent, gifts to friends, and cryptocurrency purchases. On Nov. 2, 2021, he transferred $25,000 of loan proceeds to a Coinbase account, leading to the money laundering charge.
As part of his plea deal, Hopkins agreed to forfeit $516,900 — the amount he obtained from the scheme — and to pay restitution to the SBA for the fraudulent loans. That includes $352,000 for the loan increase, $120,000 for the PPP loan, and $44,000 plus interest for another disaster loan.
Hopkins, who was released pending sentencing, waived his right to appeal. The court will determine his sentence in January, guided by federal sentencing rules that weigh the amount of loss and other factors.
The case is part of a broader federal crackdown on COVID relief fraud, which prosecutors across the country have said siphoned billions from programs meant to help businesses survive the pandemic.