AUSTIN, TEXAS – Tiffany Fullerton, 47, of Georgetown, Texas, has been convicted by a federal jury on charges of conspiracy to commit bank fraud and conspiracy to commit money laundering. The verdict, delivered late yesterday, exposes a brazen scheme to exploit the Paycheck Protection Program (PPP) for personal gain, ultimately funneling funds into a failed business venture and luxury items.
Court records reveal Fullerton, along with her husband, Michael Fullerton, and co-conspirators David Scott Starkes and Joseph Robles, concocted a scheme utilizing dormant and expired business names to submit a staggering five fraudulent PPP loan applications. The total requested exceeded $3 million, with four applications ultimately approved, granting the group access to approximately $2.4 million in taxpayer dollars. This wasn’t about saving jobs; it was about lining pockets.
The ill-gotten gains weren’t used to keep businesses afloat during the pandemic. Instead, the defendants attempted to launch a multi-faceted operation in Oklahoma, encompassing a marijuana grow and dispensary, a bar and grill, and an auto/boat repair shop. The venture proved unsuccessful, but not before a significant portion of the funds were diverted for personal enrichment. The evidence presented at trial showed a clear pattern of lavish spending, including the purchase of a motor home, luxury watches, a boat, and other high-end expenditures.
This wasn’t a victimless crime. The PPP was designed to help legitimate businesses survive during unprecedented economic hardship. Fullerton and her co-conspirators didn’t just steal money; they stole opportunities from those who genuinely needed it. The brazenness of the scheme, from the fraudulent applications to the extravagant purchases, speaks to a calculated disregard for the law and the public trust.
Michael Fullerton, David Scott Starkes, and Joseph Robles have already pleaded guilty in connection with the case and are currently awaiting sentencing hearings. U.S. Attorney Jaime Esparza for the Western District of Texas announced the guilty verdict against Tiffany Fullerton, highlighting the commitment of federal authorities to prosecute those who exploit crisis situations for personal profit. The investigation was a joint effort by the IRS Criminal Investigation and the Treasury Inspector General for Tax Administration.
Assistant U.S. Attorneys Keith Henneke and G. Karthik Srinivasan skillfully prosecuted the case, building a solid case based on financial records and evidence presented at trial. Sentencing for Tiffany Fullerton has not yet been scheduled. Expect a lengthy prison term given the scale of the fraud and the calculated nature of the conspiracy. Grimy Times will continue to follow this case and report on the sentencing of the remaining defendants.
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Key Facts
- State: Texas
- Agency: DOJ USAO
- Category: White Collar Crime|Fraud & Financial Crimes|Drug Trafficking|Organized Crime
- Source: Official Source ↗
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