Three Metro East residents and federal employees have been indicted by a federal grand jury on charges of defrauding the government's Paycheck Protection Program (PPP), a fund established to help small businesses during the COVID-19 pandemic. The individuals are accused of falsely acquiring over $20,000 each in relief funds, according to an announcement made by U.S. Attorney Rachelle Aud Crowe. The PPP loans were intended to support businesses in maintaining their workforce and managing expenses during the economic downturn triggered by the pandemic.
As reported by the U.S. Attorney's Office, Southern District of Illinois, Katherine L. Liggins, Eric C. Scott, and Tamika N. Wilson, all full-time employees of the Veterans Affairs Regional Office in St. Louis County, leveraged misinformation to apply for the loans and subsequently for loan forgiveness—which they each were approved. Liggins faces one count of wire fraud and one count of material false statements, while Scott faces similar charges for his alleged misuse of the funds. Wilson, facing two counts of wire fraud, two counts of material false statement, and two counts of material false document, is accused of obtaining over $40,000 in unentitled PPP loans.
The indictments come as a stark reminder of the vulnerabilities inherent in rapidly deployed relief efforts. The defendants also used misinformation to apply for loan forgiveness, which they each were approved. As detailed by the U.S. Attorney's Office, Southern District of Illinois, If convicted, the wire fraud charges could lead to up to 20 years in federal prison, with additional charges for material false statements and documents potentially adding up to five years each. The case is currently being investigated by agents from the Department of Veterans Affairs Office of Inspector General and prosecuted by Assistant U.S. Attorney Scott Verseman.
