CHARLESTON, W.Va. – A 33-year-old South Charleston woman has been handed a four-month prison sentence for her role in a COVID-19 relief fraud scheme, federal authorities announced.
Lydia Spencer, the sole proprietor of Les Prints, a custom clothing business, was sentenced to 4 months in prison, followed by 3 years of supervised release, and ordered to pay $36,814.13 in restitution for conspiracy to commit bank fraud.
According to court documents and statements made in court, Spencer was recruited by a co-conspirator to participate in the scheme in April 2021. She provided her personal and bank account information, which was used to submit fraudulent Paycheck Protection Program (PPP) loan applications on behalf of Les Prints to two different lenders.
Each lender approved a PPP loan for Les Prints, with Spencer receiving 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 admitted that the PPP loan applications contained materially false information, including a false Internal Revenue Service (IRS) Form 1040, Schedule C Profit or Loss from Business reporting that Les Prints had received $75,000 in gross income in 2020. She also admitted to transferring $4,000 from the fraudulent loan proceeds to one of the co-conspirators, labeling the transfer as a marketing expense.
United States Attorney Will Thompson commended the investigative work of the Federal Bureau of Investigation (FBI) in bringing the case to a close. United States District Judge Irene C. Berger imposed the sentence. Assistant United States Attorneys Holly Wilson and Gabriel Price prosecuted the case.
The COVID-19 relief fraud scheme was part of a larger effort to combat and prevent pandemic-related fraud, with the Attorney General establishing the COVID-19 Fraud Enforcement Task Force in May 2021 to marshal the resources of the government to enhance efforts to combat and prevent pandemic-related fraud.
Related Federal Cases
- Jeffrey K. Wilson Indicted in $13.8M Rent-A-Vet Fraud · Texas
- Bradley Temple, COVID-19 Relief Money Embezzlement, Wheeling WV, 2023 · Florida
- Bradley Temple Embezzled COVID Relief Funds, Wheeling WV, 2023 · Florida
- 23andMe, Data Auction Without Consent, New York NY, 2023 · Vermont
- Live Nation, Antitrust Lawsuit, New York NY, 2024 · Texas
Key Facts
- State: West Virginia
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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