Halee Ann Mehlbauer of Tooele, Utah, has been sentenced to 15 months in prison for her role in fraudulently obtaining approximately $177,030 in COVID-19 Paycheck Protection Program (PPP) Loans, the Justice Department announced. Alongside her codefendant, Timothy Lopez, Mehlbauer was convicted for crimes involving wire fraud and money laundering after admitting to their scheme. Following her incarceration, Mehlbauer will face two years of supervised release and is also mandated to repay the full amount she illicitly obtained, as confirmed by the U.S. Department of Justice.
Initiated around mid-July 2020 and continuing until January 2022, Mehlbauer, 40, engaged in fraudulent activities to secure funds from the PPP Loan Program. The duo fabricated information on loan applications, backing their claims with documents from non-existent businesses, U.S. District Court Judge David Barlow highlighted during sentencing. The illicit funds were used on personal expenses, including gambling, and various debt payments, in stark violation of the intended purpose to support legitimate small businesses' payroll and rent during the pandemic.
"Every dollar that Mehlbauer received in PPP-Loan funds was taxpayer money," U.S. Attorney Melissa Holyoak of the District of Utah stated, as per the U.S. Department of Justice, emphasizing the gravity of the offense. Holyoak expressed a hope that the sentence serves as a deterrent to others who might contemplate misusing government aid programs.
The coordinated effort of the Utah Federal COVID-19 Fraud Strike Force spearheaded the investigation, pulling together resources from multiple agencies, including the FBI, HSI, and the SBA-OIG. Special Agent in Charge Robert Bohls of the Salt Lake City FBI condemned the greed that led to this exploitation of emergency government funds, vowing the FBI’s commitment to prosecuting such fraudulent actions. The public is encouraged to report any suspected abuses of the SBA programs, including the PPP, by submitting a complaint through a platform provided by the justice system.
