An El Paso woman has pleaded guilty to defrauding the federal Paycheck Protection Program of more than $2 million, according to a Thursday announcement from federal prosecutors. The case adds another name to a growing list of pandemic-era relief fraud prosecutions playing out across the country.
The plea was announced in a social media post from the U.S. Attorney's Office for the Western District of Texas.
The post tagged the Department of Justice's Fraud Division, the FBI's El Paso field office, and IRS Criminal Investigation.
Beyond confirming the guilty plea and the dollar amount, the announcement did not identify the woman by name, describe how the alleged fraud scheme worked, or say what she allegedly did with the funds. No sentencing date, potential prison term, or restitution figure has been made public.
What the Paycheck Protection Program Was Meant to Do
The Paycheck Protection Program was designed to help small businesses keep workers on payroll during pandemic shutdowns. According to the U.S. Department of the Treasury, the program provided funds to cover up to eight weeks of payroll costs, including benefits, and allowed some funds to be used for mortgage interest payments.
The program eventually closed, ending the window during which businesses could apply for loans. PPP loans were available during the economic emergency.
The El Paso PPP Case
The El Paso case involves alleged fraud tied to a pandemic relief program.
Federal prosecutors have not indicated when sentencing will take place or what penalties the woman could face. Hoodline will provide updates if the U.S. Attorney's Office or court records release additional details about the case.
