By: Najla Alexander
NJ authorities announced that a North Carolina woman admitted conspiring to submit fraudulent applications, leading to the issuance of 29 Paycheck Protection Program (PPP) loans totaling more than $3.5 million.
U.S. Attorney Philip R. Sellinger stated that Lisa Smith, 61, of Cornelius, North Carolina, pleaded guilty before U.S. District Judge Karen M. Williams in Camden federal court on July 17, 2024, to an information charging her with one count of bank fraud conspiracy.
According to documents filed in these cases and statements made in court:
In early 2021, officials said, Smith submitted PPP loan applications for two companies that she controlled.
The applications included fake bank statements and fake IRS tax forms and significantly overstated the companies’ number of employees and payroll expenses., officials say.
According to officials, Smith obtained $125,000 in PPP loans based on these fraudulent applications.
Officials stated that Smith and her conspirators recruited individuals who owned companies with little or no operations to apply for PPP loans.
Authorities say Smith helped the recruited individuals submit PPP loan applications that contained fake bank statements and fake IRS tax forms, as well as materially false representations about the companies’ number of employees and payroll expenses.
Based on these fraudulent PPP loan applications, more than 25 PPP loans totaling more than $3.5 million were approved and funded, officials said, and Smith received a percentage of the loan proceeds as compensation for her role.
Officials say the count of conspiracy to commit bank fraud is punishable by a maximum of 30 years in prison and a $1 million fine.
Sentencing is scheduled for Nov. 21, 2024, officials said.