Defendant Pleads Guilty to COVID-19 Relief Fraud Scheme

CHARLESTON, W.Va. – Lydia Spencer, 33, of South Charleston, pleaded guilty on Friday, April 5, 2023, to conspiracy to commit bank fraud.

Spencer admitted to participating in a scheme to defraud the Paycheck Protection Program (PPP) of $31,250 in COVID-19 relief loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).

According to court documents and statements made in court, Spencer was the sole proprietor of Les Prints, a custom clothing business that had its principal office in Charleston. Spencer admitted to conspiring with at least three other individuals in April 2021 to obtain fraudulent PPP loans for her business.

One of the co-conspirators recruited Spencer to participate in the scheme that spring, and Spencer provided her personal and bank account information to this individual. On April 8, 2021, another of the co-conspirators used Spencer’s information to submit fraudulent PPP loan applications on behalf of Les Prints to two different lenders.

Spencer received a $15,625 transfer disbursed by one of the lenders on April 30, 2021, and a $15,625 transfer disbursed by the other lender on June 17, 2021. Both transfers were deposited in Spencer’s personal bank account with an Oklahoma-based bank.

Spencer is scheduled to be sentenced on July 25, 2024, and faces a maximum penalty of 30 years in prison, five years of supervised release, and a $1 million fine. Spencer also owes at least $31,250 in restitution.

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