BOSTON – In a shocking case of pandemic-era financial exploitation, 65-year-old Plymouth woman Katherine Reynolds has been arrested and charged with two counts of wire fraud in connection with submitting fraudulent Paycheck Protection Program (PPP) loan applications.
According to charging documents, Reynolds submitted two loan applications on behalf of herself and her father, claiming they earned over $100,000 per year providing massage services out of their home. However, investigators found that the applications included fraudulent tax forms that were not filed with the IRS.
Reynolds was released on conditions following an initial appearance in federal court in Boston earlier today. If convicted, she faces up to 20 years in prison, three years of supervised release, and a fine of up to $250,000.
The case was investigated by the Massachusetts Office of the Inspector General, with valuable assistance from Homeland Security Investigations in New England. Assistant U.S. Attorney Brian Sullivan of the Major Crimes Unit is prosecuting the case.
Reynolds’ arrest comes as part of the Attorney General’s COVID-19 Fraud Enforcement Task Force, established in May 2021 to combat and prevent pandemic-related fraud. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the National Center for Disaster Fraud (NCDF) Hotline or submitting a web complaint form.
The details contained in the charging documents are allegations, and Reynolds is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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Key Facts
- State: Massachusetts
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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