Oklahoma Nonprofit Bank Fraud: Leader Convicted in PPP Case
Oklahoma Nonprofit Leader Convicted of Bank Fraud in Federal PPP Loan Case
A federal jury has convicted Victor Kensington Colbert Jr. of two counts of bank fraud involving fraudulent applications for federal pandemic relief loans. Colbert, who operated the Bixby-based Oklahoma Heartland Heroes Foundation, was found guilty after prosecutors presented evidence that he submitted false payroll information and tax documents to obtain money through the federal Paycheck Protection Program (PPP).
The verdict follows a federal investigation into Colbert's use of emergency financial assistance intended to help organizations retain employees during the COVID-19 pandemic. Prosecutors said Colbert falsely represented the foundation's staffing and payroll expenses to qualify for loans, ultimately obtaining funds that were supposed to support legitimate employment costs. The conviction also follows years of complaints surrounding the nonprofit's operations and its dealings with other community organizations.
Oklahoma Nonprofit Leader Convicted After Fraudulent PPP Applications
According to the U.S. Attorney's Office for the Northern District of Oklahoma, Colbert submitted fraudulent applications through Tulsa Federal Credit Union using financial records that misrepresented the foundation's operations.
Prosecutors established that Colbert claimed the nonprofit employed as many as 21 workers with a monthly payroll of approximately $59,000, figures used to justify the amount of federal assistance requested. The applications included tax documents that had not actually been filed with the Internal Revenue Service.
During the trial, several individuals associated with the foundation testified that they had not received the salaries Colbert claimed to have paid them. Their testimony challenged the payroll figures submitted to the lender and supported the government's case that the loan applications contained knowingly false information.
The Oklahoma Heartland Heroes Foundation operated between 2018 and 2022, presenting itself as a charitable organization serving people in need. Federal investigators determined that Colbert used the nonprofit's identity and purported employment expenses to seek pandemic assistance.
The case involved two PPP loans and an Economic Injury Disaster Loan advance, with the combined funding totaling approximately $217,490. The jury's guilty verdict specifically concerned the two bank fraud counts arising from the PPP loan applications.
Federal Investigation Revealed False Payroll and Tax Records
The federal case began before the conviction, with prosecutors announcing an indictment in September 2025. According to the Justice Department's original indictment announcement, Colbert submitted at least five applications seeking assistance through programs established under the Coronavirus Aid, Relief, and Economic Security Act.
The applications represented that the foundation maintained a substantial payroll and needed financial assistance to retain employees. Prosecutors later presented evidence that the tax documents submitted in support of those applications were fraudulent and had never been filed with federal tax authorities.
The testimony of foundation workers became a significant part of the government's case. Multiple individuals told jurors they had not been paid by Colbert, contradicting the salary expenses claimed in the applications. Prosecutors argued that the false records enabled Colbert to obtain funding intended for legitimate pandemic-related business expenses.
The investigation was conducted by the Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau. Assistant U.S. Attorneys Thomas Buscemi and Charles Greenough prosecuted the case.
Previous Complaints Surrounding Oklahoma Heartland Heroes Foundation
Colbert's federal conviction follows years of public controversy involving the Oklahoma Heartland Heroes Foundation. The organization had previously faced complaints from community groups and questions about its handling of food assistance and charitable arrangements.
In 2021, concerns emerged after large quantities of spoiled food were discovered behind a north Tulsa church. The discarded products reportedly included milk and cottage cheese distributed through the federal Farmers to Families Food Box Program, an initiative designed to provide agricultural products to families experiencing food insecurity during the pandemic.
Other community organizations, including the Tulsa Dream Center and Church That Matters, reported paying Colbert for Thanksgiving food purchases that were not delivered as promised. Those complaints became the subject of local investigative reporting, including FOX23's examination of allegations involving the nonprofit.
Those earlier allegations provide background on the foundation's history but are separate from the two federal bank fraud counts decided by the jury. The conviction specifically concerns fraudulent representations made in applications for pandemic relief funding.
Colbert now awaits sentencing in federal court. Each bank fraud conviction carries a statutory maximum penalty of 30 years in prison, meaning the two counts carry a combined maximum of 60 years if imposed consecutively. The actual sentence will be determined by the court under applicable federal sentencing laws and guidelines.
The jury's verdict establishes that Colbert used fraudulent loan applications to obtain federal pandemic assistance, turning a program intended to preserve jobs into the basis of a federal bank fraud conviction.
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