Rakita Davis, PPP Loan Fraud, Indiana 2021

Gruesome Times has learned that Rakita Davis, a 45-year-old former IRS employee, has been sentenced to 24 months of probation and ordered to repay $55,213.61 in restitution to the Small Business Administration for her role in a PPP loan scam.

According to court documents, Davis falsely claimed gross income for a business that did not exist when she applied for two Paycheck Protection Program (PPP) loans in 2021. The PPP program, part of the CARES Act, provided loans to small businesses for job retention and other expenses during the COVID-19 pandemic.

Davis, who claimed to be the sole proprietor of a catering business, used the PPP funds for her own benefit on personal items such as jewelry, airfare, luxury car rentals, and vacations. The investigation, led by the United States Treasury Inspector General for Tax Administration with assistance from IRS Criminal Investigation, revealed Davis’s deceitful scheme.

‘This sentencing demonstrates the commitment of the Treasury Inspector General for Tax Administration to investigate and bring to justice those who victimize the American taxpayer,’ said Kelly Moening, TIGTA Special Agent-in-Charge.

‘Fraudulently applying for loans through a federal program meant to assist Americans in need will be met with aggressive investigation and prosecution. I want to thank our law enforcement partners and the U.S. Attorney’s Office for their commitment to this goal.’

The case was prosecuted by Assistant United States Attorney Justin C. Sheridan. Davis’s sentencing serves as a warning to those who would seek to take advantage of federal programs meant to aid Americans in need.

Gruesome Times will continue to monitor this case and provide updates as more information becomes available.

Related Federal Cases