In a hefty sentence passed down yesterday, Mansfield businesswoman Tamara Starks was ordered to serve over 7 years in federal prison for a multi-million-dollar fraud scheme exploiting the Paycheck Protection Program (PPP), a relief effort meant to support struggling businesses during the COVID-19 pandemic. The official press release issued by the U.S. Attorney for the Northern District of Texas, Leigha Simonton, indicates that Starks, age 42, previously pled guilty to wire fraud in September 2024.
U.S. District Judge Mark Pittman, having presided over the case, also mandated that Starks compensate for her crimes by paying back $4,476,523.73 in restitution. Court records, following an investigation by federal agencies including the FDIC-OIG, IRS-Criminal Investigation, and SSA-OIG, reveal that from May 2020 to May 2021, Starks constructed a deceptive operation that took advantage of the PPP's design to help small businesses keep their workforce employed during the shutdowns and restrictions prompted by the pandemic.
Through a series of over 100 fraudulent loan applications, which Starks and her accomplices submitted, they sought approximately $8.5 million in funds, managing to secure $4.5 million. The U.S. Attorney's Office details that each application contained falsified payroll and tax records for enterprises owned by Starks and her husband, and for other individuals as well.
In an elaborate ruse intended to cover their tracks, Starks directed those who received the funds to establish phony payrolls with third-party vendors. In most cases, this sham employment circled back to Starks, where the PPP funds, mimic legitimate expenses, were funneled into her accounts. According to the Assistant U.S. Attorneys Dimitri Rocha and Nashonme Johnson (fmr.) who prosecuted the case, the perpetrator charged a kickback as a "fee" to those she helped acquire the ill-gotten loans.
