Boston – A 65-year-old Plymouth woman has been hit with serious charges for allegedly submitting fraudulent Paycheck Protection Program (PPP) loan applications. Katherine Reynolds, the suspect, faces two counts of wire fraud, a crime that could land her up to 20 years in prison.
According to federal court documents, Reynolds is accused of falsely claiming she and her elderly father earned over $100,000 annually from home-based massage services. The fraudulent loan applications were further bolstered with fake tax forms that never made it to the IRS.
Reynolds was released on bail following an initial appearance in Boston federal court. If convicted, she could also face three years of supervised release and a fine upwards of $250,000.
U.S. Attorney Joshua S. Levy and Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England, announced the charges. The Massachusetts Office of the Inspector General played a key role in the investigation, with Assistant U.S. Attorney Brian Sullivan handling the prosecution.
The Department of Justice has been on high alert for PPP fraud since the onset of the COVID-19 pandemic. In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to combat such schemes effectively.
Anybody with information regarding PPP or COVID-19 related fraud can report it by contacting the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline.
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Key Facts
- State: Massachusetts
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|White Collar Crime
- Source: Official Source ↗
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