Three defendants were arrested this morning in connection with a $1.6 million Covid-19 fraud scheme, authorities announced today. Alicia Ayers, Andrea Ayers, and Traci Proctor were charged with conspiracy to commit wire fraud, wire fraud, false statements, and aggravated identity theft in connection with the scheme.
The scheme allegedly involved submitting disaster loan and grant applications for non-existent businesses to the U.S. Small Business Administration (SBA) between June and July 2020. The defendants used the identities of approximately 300 other individuals to submit 315 online applications, seeking over $3 million of funds through the SBA’s Economic Injury Disaster Loan Program.
According to the complaint, the defendants falsely represented to the SBA that the applicants were the owners of the businesses, and that they were in need of financial assistance due to the Covid-19 pandemic. The SBA provided the defendants with nearly $1.7 million worth of payments, a portion of which they received in the form of kickbacks.
The defendants will face serious consequences if convicted. The charge of conspiracy to commit wire fraud carries a maximum sentence of 20 years in prison, and the charge of wire fraud carries a maximum sentence of 20 years in prison.
Alicia Ayers and Andrea Ayers will be presented before United States Magistrate Judge Judith C. McCarthy this afternoon, while Traci Proctor will be presented in United States District Court for the Northern District of Georgia.
The case is ongoing, and authorities are urging anyone with information to come forward. The FBI and SBA-OIG worked together to investigate the scheme, and authorities are committed to pursuing justice in cases of Covid-19-related fraud.
The SBA’s Economic Injury Disaster Loan Program was established to provide financial assistance to small businesses affected by the Covid-19 pandemic. The program allowed applicants to request and receive an advance of approximately $1,000 per employee, for an amount up to $10,000, while their loan application was pending.
The defendants’ actions are a betrayal of the trust placed in them by the SBA and the public. They allegedly used the identities of 300 other individuals to defraud the SBA out of $1.6 million, and their actions will not be tolerated.
Defendant Information:
Defendant Names: Alicia Ayers, Andrea Ayers, Traci Proctor
Criminal Charges: Conspiracy to commit wire fraud, wire fraud, false statements, and aggravated identity theft
City and State: New York
Exact Date: (no specific date mentioned)
Sentence or Outcome: Currently pending
Dollar Amounts: $1.6 million, $1.7 million, $3 million, $10,000
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Key Facts
- State: New York
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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