Rosalend Way, Pandemic Loan Fraud, Georgia 2020

Central Georgia Woman Found Guilty of Pandemic Loan Fraud Scheme

A Milledgeville, Georgia, resident was found guilty of wire fraud conspiracy and money laundering in connection with a scheme to fraudulently obtain COVID-19 relief funds guaranteed by the U.S. Small Business Administration (SBA) through the Paycheck Protection Program (PPP).

Rosalend Way, 40, of Milledgeville, was found guilty of one count of conspiracy to commit wire fraud and one count of money laundering on September 24, following a three-day trial that began on September 22. Way is facing a maximum of 20 years in prison and a $1,000,000 fine. Sentencing is scheduled for December 2.

Way and her codefendant, James Frank Austin, 51, of Americus, Georgia, applied for a PPP loan on behalf of Propel Opportunity Fund, a business established to raise capital through investors and use the funds to conduct pre-development work in underserved neighborhoods. The loan application indicated that Propel had 18 employees with an average monthly payroll of $420,558, and they needed the funds to make payroll, as well as to pay their mortgage interest and utilities.

However, IRS records from Propel’s 2019 corporate tax return showed that the company did not pay any salaries or wages, nor did Propel’s bank statements reflect payroll as suggested in the PPP application. The loan was approved and Propel received $1,051,395. Approximately $500,000 ended up in bank accounts belonging to Way and was spent on personal items including dining, retail, gas, groceries, and cash withdrawals. Additionally, Austin used approximately $30,000 in funds from another fraudulently obtained PPP loan to pay off Way’s Mercedes-Benz.

“Our office will pursue justice against those who exploited a taxpayer-funded program created to sustain citizens during a national emergency,” stated U.S. Attorney William R. “Will” Keyes. “Our federal investigative and prosecutorial team is committed to holding these offenders accountable.”

According to court documents, Way and Austin chose to commit fraud, further depleting funds designed to help people who struggled to survive during the pandemic. The FBI and their law enforcement partners will continue to pursue criminals who cheat federal health programs and profit at the expense of American taxpayers.

Rosalend Way, Defendant, Macon, Georgia, 2020 - Found guilty of one count of conspiracy to commit wire fraud and one count of money laundering, facing a maximum of 20 years in prison and a $1,000,000 fine. Sentencing is scheduled for December 2.

Source: https://www.justice.gov/usao-mdga/pr/central-georgia-woman-found-guilty-pandemic-loan-fraud-scheme