Missouri woman pleads guilty in PPP loan fraud

Date: Oct. 16, 2024

Contact: [email protected]

Kansas City, KS - A Missouri woman pleaded guilty to charges related to criminal conduct connected to a federal government program intended to help small business owners during the COVID-19 pandemic.

According to court documents, Venester Fayne, of Kansas City, Missouri, pleaded guilty to one count of wire fraud and one count of money laundering.

In May 2020, Fayne applied to the Payroll Protection Program (PPP) on behalf of a company she controlled. She admitted that to receive the PPP loans, she submitted fraudulent federal income tax documents with false information about the amount of the company's gross sales. The documents had never been filed with the Internal Revenue Service (IRS).

Federal law requires borrowers to use PPP funds only for certain qualified expenses. Fayne spent most of the money she received on personal expenses like jewelry and other luxury items.

In addition to the PPP loans, Fayne fraudulently obtained an Economic Injury Disaster Loan (EDIL) loan through the U.S. Small Business Administration for a total of $600,284 in fraudulent PPP and EIDL loans.

Fayne is scheduled to be sentenced on February 18, 2025, and faces a maximum penalty of 30 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The U.S. Secret Service is investigating the case.

Assistant U.S. Attorney Chris Oakley is prosecuting the case.

IRS-CI is the criminal investigative arm of the IRS, responsible for conducting financial crime investigations, including tax fraud, narcotics trafficking, money-laundering, public corruption, healthcare fraud, identity theft and more. IRS-CI special agents are the only federal law enforcement agents with investigative jurisdiction over violations of the Internal Revenue Code, obtaining a more than a 90 percent federal conviction rate. The agency has 20 field offices located across the U.S. and 12 attaché posts abroad.