A Southfield woman has admitted in federal court that she helped pull off a COVID-era loan scam that prosecutors say drained about $1.2 million from the Paycheck Protection Program. Catherine Spidell-Ferguson entered a guilty plea Friday in Detroit to one count of conspiracy to commit bank fraud and will be sentenced after a presentence report is completed.
In a press release, the U.S. Attorney’s Office for the Eastern District of Michigan said Spidell-Ferguson admitted she joined a scheme that produced roughly $1.2 million in fraudulent PPP proceeds. Her husband, D’Angelo Ferguson, pleaded guilty in January to the same conspiracy charge tied to the plot. U.S. Attorney Jerome F. Gorgon aimed pandemic-era scammers, calling fraud “a plague on our Nation,” while investigators with Homeland Security Investigations said court filings show multiple bogus loan applications were used to tap into federal relief funds.
How prosecutors say the scheme worked
According to prosecutors, D’Angelo Ferguson submitted three separate PPP loan applications that dramatically padded monthly income, payroll figures, and employee headcounts. The filings also relied on fabricated supporting documents. Court records indicate Catherine Spidell-Ferguson acknowledged taking part in at least one of those applications, and authorities say the couple together pulled in about $1.2 million. Homeland Security Investigations led the probe, and the U.S. Attorney’s Office is handling the prosecution.
What they face in court
As laid out by the U.S. Attorney’s Office for the Eastern District of Michigan, both Spidell-Ferguson and Ferguson face statutory maximum penalties of up to 30 years in prison, fines of up to $1,000,000, and up to five years of supervised release for conspiracy to commit bank fraud. Sentencing will take place before U.S. District Judge Laurie J. Michelson after the probation office prepares a presentence report, and prosecutors may also pursue restitution and other financial penalties allowed under federal law.
Local crackdown continues
Federal officials say this case is one piece of an ongoing crackdown on pandemic-relief fraud in Michigan, with investigators continuing to chase questionable PPP and unemployment-benefit claims across the region. Recent local coverage has highlighted similar prosecutions in Oakland County and nearby communities, including reporting by The Detroit News.
The case remains active in federal court. Sentencing for Spidell-Ferguson and Ferguson will be scheduled once the presentence reports are finished, and prosecutors say pandemic relief fraud will stay on the radar for investigators in the Eastern District of Michigan.
