Houston resident sentenced in $14 million pandemic loan fraud conspiracy

HOUSTON - A 42-year-old woman has been ordered to federal prison for her role in a multimillion-dollar pandemic loan fraud conspiracy.

Trenikia Lashae Banks pleaded guilty Sept. 22, 2025.

U.S. District Judge Kenneth M. Hoyt ordered Banks to serve 18 months in federal prison to be followed by three years of supervised release. Banks was also ordered to pay more than $400,000 in restitution to the Small Business Administration. In handing down the sentence, Judge Hoyt cited the aggravated nature of the crime and Banks' lack of moral fortitude. He emphasized there is no such thing as "free money" and described her conduct as intentional, not a mistake.

In 2020 and 2021, Banks and Shawn Nicholas Young conspired with approximately 70 others to submit fraudulent applications for funds through the Paycheck Protection Program and Economic Injury Disaster Loan funds intended to help small businesses during the COVID-19 pandemic.

Young submitted more than 100 loan applications from his Missouri City residence, including one for his fake business All Day Money Crew LLC.

The group attempted to obtain more than $14 million in pandemic loan funds and successfully received approximately $4.5 million.

Through Young, Banks obtained three pandemic loans for fake businesses in her name and paid him kickbacks from the proceeds. She also falsified documents at Young's request for submission with 15 loan applications for other co-conspirators. Young paid Banks to falsify the documents even when the loan applications were unsuccessful.

Banks was permitted to remain on bond and voluntarily surrender to a Federal Bureau of Prisons facility to be determined in the near future.

Young, 43, Missouri City, also pleaded guilty to conspiracy to commit wire fraud for his role in the scheme and is set for sentencing Feb. 9, 2027.

Federal Housing Finance Agency - Office of Inspector General, Treasury Inspector General for Tax Agency, SBA - OIG, Federal Deposit Insurance Corporation - OIG, and Immigration and Customs Enforcement Homeland Security Investigations conducted the investigation, with the assistance of Fort Bend County Sheriff's Office and Harris County Constable's Office Precinct 1.

Assistant U.S. Attorney Stephanie Bauman prosecuted the case.

On April 7, the Department of Justice announced the creation of the National Fraud Enforcement DivisionLinks to other government and non-government sites will typically appear with the "external link" icon to indicate that you are leaving the Department of Justice website when you click the link. which is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department's work to combat fraud supports President Trump's Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within federal benefit programs.