Kansas City Woman Pleads Guilty to COVID-19 Fraud

KANSAS CITY, Mo. - A Kansas City, Mo., woman has pleaded guilty in federal court to fraudulently receiving two Paycheck Protection Program (PPP) Loans totaling $426,600. The program that was part of the Coronavirus Aid, Relief and Economic Security (CARES) Act.

Ashli Forbes, 40, pleaded guilty before U.S. District Judge Greg Kays today to a federal indictment that charged her with wire fraud and money laundering.

The purpose of the CARES Act was to provide emergency financial assistance due to the economic impact caused by the COVID-19 pandemic. The CARES Act authorized the Small Business Administration to provide PPP Loans to eligible small businesses that experienced substantial financial disruption due to the economic impact of the COVID-19 pandemic.

By pleading guilty today, Forbes admitted she submitted false applications and supporting documents for PPP loans for Forbes Realty Company LLC and Left Lane Motors LLC. Forbes was the owner of both companies.

On April 22 and 28, 2020, Forbes submitted loan application and supporting documents stated that Forbes Reality Company, LLC, had an average monthly payroll of $82,519. As part of the application, FRC payroll records for Forbes listed 2019 Medicare wages of $240,000. In fact, Ashli Forbes' 2019 tax return did not include any income from Forbes Reality Company LLC. Ashli Forbes did not file a 2020 tax return.

On April 30, 2020, Commerce Bank sent a wire communication, the loan application, from Kansas City to the Small Business Administration in Sterling, Virginia. On May 6, 2020, Forbes Reality Company LLC received $206,200 PPP loan in its Commerce Bank account.

On June 19, 2020, defendant Ashli Forbes created an application for a PPP loan under the CARES Act for a business, Left Lane Motors, LLC (LLM). The application and supporting documents submitted to Commerce Bank stated that Left Lane Motors, LLC, had an average monthly payroll of $79,836. As part of the application, a 2019 Schedule C for Left Lane Motors, LLC, was submitted which listed gross receipts of $1,376,541, wages of $958,032, and a net profit of $292,606. Forms 941 and 944 (Employer's Quarterly and Annual Tax Reports) were provided to Commerce Bank as part of the PPP application process. The application requested a loan in the amount of $220,400. In fact, Forms 941 and 944 were never filed with the IRS and the payments listed on the Forms were never received by the IRS.

On June 23, 2020, Commerce Bank sent a wire communication, the loan application, from Kansas City to the Small Business Administration in Sterling, Virgina. On June 29, 2020, LLM's Commerce Bank account received the $220,400 PPP loan.

On January 22, 2021, Ashli Forbes transferred $20,000 of the funds obtained in the fraud from the FRC Commerce Bank account to pay an insurance bill, which provided the factual basis for her guilty plea to money laundering.

As part of her plea agreement, Forbes admitted submitting or assisting in fraudulent PPP loans for four other companies, totaling $1,362,133.00 in fraudulent loans.

Under federal statutes, Forbes is subject to a sentence of up to 30 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors.

This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by Internal Revenue Service - Criminal Investigation and the Kansas City, Missouri Police Department.