Kansas City Woman Pleads Guilty to COVID-19 Fraud

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 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. Forbes was the owner of both companies, Forbes Realty Company LLC and Left Lane Motors LLC.

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.

According to the indictment, Forbes submitted false applications and supporting documents for PPP loans for Forbes Realty Company LLC and Left Lane Motors LLC. On April 22 and 28, 2020, Forbes submitted loan application and supporting documents stated that Forbes Realty Company, LLC, had an average monthly payroll of $82,519. In fact, Ashli Forbes’ 2019 tax return did not include any income from Forbes Realty Company LLC.

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 Realty 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 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 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.

MORE FEDERAL CRIME NEWS

White Collar Crime

Mykhaylo Chugay, Tax, Immigration, and Money Laundering, Florida 2024

Aug 26, 2022

White Collar Crime

Chester Lee Smith, Wire Fraud, North Carolina 2002

Jan 15, 2002

White Collar Crime

Martin S. Kimber, Mercury Tampering, New York 2013

May 16, 2012

White Collar Crime

Geraldine Boulding, Money Laundering, Nevada 2004

Jan 15, 2004