Wendy Nicole Villatoro, formerly a public official in Washington, D.C., pleaded guilty to bank fraud connected to the Paycheck Protection Program (PPP), securing over $844,000 by fraudulent means, as reported by the U.S. Attorney's Office. Villatoro, a previous Homeland Security Commissioner and a then-employee of the U.S. Department of Agriculture admitted to the scheme involving false information on loan applications between March 2020 and August 2021.
According to the evidence presented, Villatoro inaccurately listed employee numbers, inflated payroll figures, and gross yearly revenue, among other financial details, to secure the illicit funds. Despite attempting to steal an amount that could have ranged from $2.6 million to $5.5 million, most of Villatoro's applications were denied, leaving her with the $844,000 that she has now been convicted of obtaining improperly. The announcement detailed that the funds were used to pay off personal debts, including student loans and a high-end vehicle purchase.
The sentencing for Villatoro is set for February 28, 2025, where she could face up to 30 years in prison and a maximum fine of $1 million. Under the conditions of her plea arrangement, she has agreed to pay restitution totaling $844,415.24 and to surrender her luxury possessions purchased with the stolen money, which includes designer clothing and jewelry as well as her BMW SUV.
The CARES Act, launched in response to the economic impact of the pandemic, provided various forms of financial assistance, with the PPP focused on small businesses for job retention. As part of her misuse of the program's funds, Villatoro's actions are said to have diverted "critical funds meant to help small businesses in need," according to the U.S. Attorney's Office, Special Agent in Charge Amaleka McCall-Brathwaite from the SBA-OIG's Eastern Region. The case was a collaborative investigation effort involving the USDA-OIG, SBA-OIG, and the FBI's Washington Field Office Asset Forfeiture Unit.
Charmeka Parker, USDA-OIG Special Agent in Charge for the Northeast Region, emphasized the message of zero tolerance for government employees who exploit relief programs in the plea announcement. The case reflects the ongoing commitment by federal partners to address fraud in these pandemic relief efforts. Individuals with information on COVID-19-related fraud attempts must contact the Department of Justice's National Center for Disaster Fraud Hotline.
