A Plymouth woman has been indicted by a federal grand jury in Boston for submitting fraudulent Paycheck Protection Program (PPP) loan applications on behalf of herself and her father. Katherine Reynolds, 65, faces charges of two counts of wire fraud and one count of money laundering, and is set to be arraigned in federal court on August 8, 2024. The charges stem from fraudulent loan applications that Reynolds submitted, where she allegedly falsely claimed substantial incomes for herself and her elderly father.
According to the indictment, Reynolds submitted two PPP loan applications claiming that she and her 86-year-old father earned over $100,000 per year providing massage services at home. These applications were supported by fraudulent tax forms that were never filed with the IRS. Furthermore, Reynolds withdrew $20,000 in cash from the loan proceeds in June 2021. The charges she faces carry severe penalties, including up to 20 years in prison for wire fraud and 10 years for money laundering, along with hefty fines.
This case underscores the significant repercussions of committing PPP fraud and money laundering. The Department of Justice, in collaboration with various agencies, has ramped up efforts to identify and prosecute individuals engaged in pandemic-related fraud.
For individuals facing similar charges or those concerned about compliance, consulting a Federal criminal defense attorney with experience defending PPP Loan Fraud is crucial.
The United States government established the COVID-19 Fraud Enforcement Task Force by the Attorney General on May 17, 2021, highlighting the ongoing commitment to combat pandemic-related fraud and protect public funds.
Wire fraud is considered to be a serious federal crime and wire fraud can be carried out by using the Internet, phone lines, fax lines, or other forms of communication. If you are charged with wire fraud, this does not mean you are immediately assumed to be guilty.
However, once you have been arrested the federal authorities have already been building a case against you, here at Dhar Law LLP, our experienced team of wire fraud defense lawyers will do everything in their power to protect you and build a strong case in your defense. Contact a member of our team today for more information (617) 880-6155
