Lubbock Man Gets 15 Years for $4M PPP Scam

Lubbock, TX – Andrew Travis Johnson, 59, will spend the next 15 years in a federal prison cell after being sentenced for a brazen scheme to steal over $4 million in Paycheck Protection Program (PPP) funds. Johnson didn’t use the money to save jobs or keep businesses afloat, as the program intended. Instead, the feds say he treated it like a personal slush fund for luxury goods and frivolous spending.

Federal prosecutors detailed how Johnson submitted 27 fraudulent loan applications, leveraging an actual business, a legitimate nonprofit, and a completely fabricated company with no employees or purpose. He gamed the system, submitting bogus employee rosters and falsified IRS paperwork to convince lenders he was entitled to the aid. The scheme spanned multiple loans, netting him nearly $4 million in stolen funds during a time when legitimate businesses were fighting for survival.

The evidence presented in court painted a picture of blatant disregard for the law and the struggling Americans the PPP was designed to help. Instead of supporting the community, Johnson allegedly blew the money on a complete overhaul of his home, extravagant vacations, and even cosmetic surgery. He didn’t stop there, also using the stolen funds to cover college tuition and invest in equipment for a separate, unrelated business venture. It was a shopping spree funded by fraud.

Beyond the fabricated company, Johnson also allegedly used the identifying information of real people – including clients of the rehabilitation company he legitimately operated – to bolster his fraudulent employee lists. He forged signatures on loan documents, further cementing the layers of deceit. His accomplice, Hope Leticia Hastey, has also been charged, though her case is still pending and she maintains her innocence.

U.S. District Judge James Wesley Hendrix didn’t show much sympathy, handing down the 15-year sentence and ordering Johnson to pay $4.15 million in restitution. The feds are also seizing numerous assets, including multiple luxury vehicles, to recoup some of the stolen funds. This isn’t just about the money, it’s about accountability for those who exploited a crisis for personal gain.

The Paycheck Protection Program, authorized under the CARES Act in March 2020, was a lifeline for many during the height of the COVID-19 pandemic. But its massive scale and rapid rollout created opportunities for scammers like Johnson to exploit the system. The Pandemic Response Accountability Committee continues to investigate PPP fraud, and the feds are warning anyone considering similar schemes that they will be prosecuted to the fullest extent of the law. This case serves as a stark warning: stealing from pandemic relief isn’t a victimless crime, and the consequences are severe.

Hastey is facing charges related to the scheme, but is presumed innocent until proven guilty. The investigation was a collaborative effort between multiple federal agencies, including the Small Business Administration Office of Inspector General and the Federal Housing Finance Agency. Assistant U.S. Attorney Matthew D. Zabel prosecuted the case.

Anyone with information about PPP fraud or other financial crimes is encouraged to report it to the Pandemic Response Accountability Committee at [insert PAC contact info here]. The feds are still actively pursuing leads and bringing those responsible for defrauding the program to justice.