A Newark woman pleaded guilty last week to fraudulently obtaining a Paycheck Protection Program (PPP) loan and illegally spending those loan proceeds. Chief U.S. District Court Judge Colm F. Connolly accepted the plea.
According to court documents, between March 30, 2020, and Jan. 24, 2021, Ana Soto, 41, submitted 17 fraudulent loan applications to the U.S. Small Business Administration (SBA) and its authorized lenders in order to obtain loans through the small business loan programs established by the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
The loan applications were made on behalf of five entities controlled by Soto or others. Each of the loan applications falsely stated revenues, cost of goods sold, and the number of employees. In some instances, the loan applications falsely claimed the businesses were in operation at the start of the Covid-19 pandemic. Soto obtained about $246,000, and applied for, but was denied, an additional approximately $500,000 in loans.
Soto pleaded guilty to one count of wire fraud and one count of money laundering and faces a maximum penalty of 20 years in prison when sentenced. Prison sentences are typically shorter
U.S. Attorney David Weiss stated, “Ms. Soto perpetrated her fraud by taking money from programs established to help the country’s small business owners during the early days of a global pandemic. At a time of great uncertainty and vulnerability, the defendant sought to enrich herself through criminal acts. My office remains committed to protecting the integrity of the CARES Act and all government programs. Prosecuting those who defraud the government and steal from their fellow citizens is a priority, and we will aggressively pursue these actors.”
This case was investigated by IRS-Criminal Investigation and FBI-Baltimore Division’s Wilmington Resident Office. This case is being prosecuted by Assistant U.S. Attorney Lesley F. Wolf.
In its early stages, the PPP was riddled with issues that included minority and female applicants being denied loans that could be turned into grants because they lacked banking relationships. Larger companies held an edge because of banking, accounting, and other service providers quickly drawing up financial statements. Publicly traded companies with ample resources often cashed in.
Soto’s case is believed to be the first in Delaware. An indictment was announced last year. (See below).
Anyone with information about allegations of attempted fraud involving Covid-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
