⏱ 2 min read
Natayah Adams, a 44-year-old former Department of Education employee from Upper Marlboro, Maryland, has agreed to pay $161,248.30 to settle allegations of scamming the Paycheck Protection Program (PPP) for COVID-19 relief. In 2021, Adams submitted three false loan applications to different lenders, claiming her jewelry resale business on Etsy brought in $100,000 in gross income. However, she knew this was not true and instead used the $62,499.32 in loans for personal expenses and another business.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act provided emergency financial assistance to Americans affected by the pandemic, including forgivable loans for small businesses. The PPP, administered by the Small Business Administration (SBA), aimed to help businesses meet their financial obligations. Adams’ actions constituted a violation of the False Claims Act, which prohibits knowingly making false claims to the government.
The U.S. Attorney’s Office, led by Kelly O. Hayes, announced the settlement with the Department of Education Office of Inspector General Eastern Regional Office (ED-OIG). Assistant U.S. Attorney M also worked on the case. The ED-OIG’s investigation revealed Adams’ material misrepresentations in her loan applications, including the false income claim and her diversion of funds for unauthorized purposes.
The settlement serves as a reminder of the government’s efforts to crack down on COVID-19 relief fraud. The PPP loan program was designed to support struggling businesses, not to line the pockets of individuals looking to exploit the system. Adams’ case demonstrates the consequences of such actions and the importance of integrity in accessing government assistance programs.
📋 Key Facts
- Crime: Fraud & Financial Crimes
- Defendant: Maryland
- Location: MD
- Source: DOJ Press Release
