Three employees of the Department of Veterans Affairs (VA) in Illinois have been indicted by a federal grand jury for allegedly participating in a scheme to defraud the Paycheck Protection Program (PPP). The program, which was established to assist struggling small businesses during the COVID-19 pandemic, was instead exploited by these individuals for personal gain, according to the charges.
The indictment accuses Katherine Liggins and Eric Scott of fraudulently securing $20,000 each in PPP loans by submitting false information. Tamika Wilson, the third employee, is facing more extensive charges, including two counts of wire fraud and multiple counts of submitting false documents. Prosecutors allege that Wilson fraudulently obtained $40,000 in loans she was not eligible for.
“These indictments send a clear message that VA employees will be held accountable if they engage in fraudulent activities,” said Special Agent in Charge Gregory Billingsley. The investigation revealed that the employees allegedly provided false information not only to obtain the loans but also to seek loan forgiveness, which would have further defrauded taxpayers.
The PPP was intended to provide critical financial support to businesses facing economic hardship during the pandemic. U.S. Attorney Rachelle Aud Crowe stressed that individuals who sought to exploit this emergency funding will be prosecuted. “Greedy individuals who sought to steal from the federal government under false pretenses will be held accountable,” she said.
The accused employees face significant legal consequences if convicted, including up to 20 years in prison for wire fraud and up to five years for false statements. While the indictments are formal charges, the defendants are presumed innocent until proven guilty in court.
