A federal grand jury has returned indictments against two Galesburg women for fraudulently obtaining PPP loans for themselves during the COVID-19 pandemic — and for assisting others in obtaining loans with fraudulent tax documents.
The indictments, filed last week in the U.S. District Court for the Central District of Illinois in Rock Island, charge Dorothy D. Barber, 53, and Shyniece L. Mixon, 27, with wire fraud.
The Paycheck Protection Program was authorized under the CARES Act in 2020 and allowed sole proprietorships and small businesses to apply for forgivable loans for job retention and other expenses during the pandemic.
Applicants were required to submit their average monthly payroll and number of employees to determine eligibility and the amount of the loan they could receive.
On Feb. 18, 2021, Barber submitted a PPP loan application that falsely claimed she owned an insurance and consulting business that had one employee and that it had generated nearly $100,000 in income in a recent year.
Barber’s PPP loan was approved and funded in the amount of $20,000. As part of the scheme, Barber then used the funds for personal expenses, according to the indictment.
Mixon also submitted a PPP loan application on Feb. 18, 2021. Her application falsely claimed she owned a beauty salon that had one employee and had generated more than $100,000 in a recent year.
As part of the scheme, Mixon then converted a $21,175 PPP loan for personal use, according to the indictment.
Barber and Mixon are also accused of recruiting and assisting others to apply for PPP loans using fraudulent tax documents, which falsely stated those borrowers operated profitable landscaping, consulting, insurance, or salon businesses.
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