Feds Indict Dozen Kansas City Area Suspects In COVID Fraud

We edited this presser and took out the names . . . But the deets about the alleged heist remain intact.

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12 KC-Area Residents Indicted for $250,000 Covid Fraud Conspiracy

KANSAS CITY, Mo. – A dozen Kansas City metropolitan residents have been indicted for their roles in a conspiracy that resulted in nearly $250,000 in fraudulent Paycheck Protection Program (PPP) loans being issued under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

According to the indictment, DEFENDANT filed fraudulent PPP loan applications on behalf of the other co-conspirators. She allegedly received payments between $2,000 and $7,000 from the loan proceeds for her assistance in filing false and fraudulent PPP loan applications. DEFENDANT created counterfeit IRS forms for nonexistent businesses, the indictment says, and inflated income for existing businesses in order to qualify the borrower for a PPP loan. Each of the defendants received a PPP loan of either $20,832 or $20,833.

In addition to the conspiracy, DEFENDANT is charged with 12 counts of wire fraud. Each of the remaining defendants are also charged with aiding and abetting her in one of those wire fraud counts for the fraudulent loan they received.

The indictment also contains a forfeiture allegation, which would require each of the defendants to forfeit to the government any property obtained from the proceeds of the alleged offenses, including a money judgment of $20,832 for each defendant.

In a separate case that arose from the federal investigation, ANOTHER SUSPECT, 42, of Olathe, Kansas, has pleaded guilty to wire fraud after obtaining a fraudulent PPP loan during this conspiracy. She admitted she received a fraudulent $20,832 PPP loan.

The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.

This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by IRS-Criminal Investigation and the Kansas City, Mo., Police Department.

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