Eleven Kansas City-area residents are facing federal charges after a grand jury accused them of conspiring to pocket more than $400,000 in fraudulent Paycheck Protection Program loans. The indictment, dated Wednesday, lays out a scheme in which one woman allegedly built fake paperwork so that her co-defendants could cash in on pandemic-era small business relief they weren't entitled to.
According to KCTV, the 21-count indictment names Gerri Jackman, 54, as the alleged architect of the operation, accusing her of preparing and filing fraudulent PPP applications on behalf of her co-defendants. Prosecutors allege she created fake IRS forms for businesses that didn't exist and inflated income figures for businesses that did, all to help borrowers qualify for loans under the Coronavirus Aid, Relief, and Economic Security Act.
Who Was Charged in the Scheme
The indictment lists ten other defendants alongside Jackman: Antonio O'Field, 35; Rahonda Pitts, 46; Adrian Smith, 39, also known as Adrian Truth; John Jackman, 35; Flora Stevenson, 50; Ayshawn Smith, 39; Victoria Townsend, 33; Gabriel Briones, 32; Christopher Jackman, 37; and Michael Davis, 31.
Per the same account, most of the borrowers allegedly received two PPP loans of $20,833 apiece, while one defendant is accused of receiving loans of $20,833 and $29,166. Each defendant now allegedly owes $41,666 in repayment, and Jackman herself is accused of pocketing about $2,000 in loan proceeds for her role in filing the false paperwork.
The Charges They Face
Gerri Jackman was charged with 20 counts of wire fraud, the report notes, while each of the other ten defendants faces two counts apiece for allegedly aiding and abetting her in connection with the fraudulent loans they personally received. None of the defendants' attorneys, pleas, or detention status were addressed in the available reporting.
Part of a Broader Federal Crackdown
This Kansas City case lands amid a wider federal push against pandemic-loan fraud. Federal prosecutors pursued more than 160 COVID-fraud enforcement cases nationwide between June and September, with alleged taxpayer losses totaling $245 million, according to KSNT. That same outlet reported that four Kansas residents were separately indicted in September over PPP-related fraud involving more than $182,000 in alleged losses.
The region has seen similar cases before. In 2023, a dozen Kansas City-area residents were indicted over an alleged PPP scheme involving nearly $250,000 in fraudulent loans, according to The Kansas City Star. In that earlier case, the indictment alleged Renetta Golden-Larimore filed fraudulent applications for her co-conspirators and charged fees ranging from $2,000 to $7,000 for her help — a range that began at the same $2,000 Jackman is accused of collecting and reached $7,000.
The U.S. Small Business Administration has previously said its Office of Inspector General, working with the SBA, the U.S. Secret Service, other federal agencies and financial institutions, helped recover or seize nearly $30 billion in COVID-19 EIDL and PPP funds as of mid-2023, according to the agency's own account.
