Shelby Lynn Hill, PPP Loan Fraud, Tennessee 2024

Nashville, Tennessee - In a shocking case of pandemic-era financial exploitation, Shelby Lynn Hill, a 54-year-old insurance broker from Crystal Beach, Texas, was sentenced to prison for her role in a brazen scheme to defraud the Paycheck Protection Program (PPP).

Hill's scheme involved obtaining multiple fraudulent PPP loans by claiming to be the owner and operator of a cattle farm in Crossville, Tennessee, and listing her potential health insurance customers as employees. She admitted to submitting fake documents, including Forms W-2, and Tennessee Secretary of State records, to support her claims. Hill received a total of $264,645 in PPP loan proceeds, which she used for personal expenses, including the installation of a swimming pool.

According to court documents, Hill obtained a $220,645 PPP loan for a fictitious business called Plateau Angus Farms in 2020. She claimed to employ 14 people and have monthly payroll expenses exceeding $88,000. Hill also received a $42,700 PPP loan for a second fictitious company, Premium Persians of the Plateau. As part of her sentence, Hill was ordered to repay the full amount of the loan proceeds and forfeit a portion of her assets.

The Paycheck Protection Program was established under the CARES Act to help small businesses retain employees during the Covid-19 pandemic. However, Hill's actions demonstrate the vulnerability of the program to exploitation by individuals seeking to take advantage of the financial assistance.

Hill's sentencing comes as a warning to others who may be tempted to engage in similar schemes. The Federal Bureau of Investigation (FBI) and other law enforcement agencies will continue to investigate and prosecute individuals who seek to exploit the PPP program for personal gain.

Hill pled guilty to one count of wire fraud in June 2024 and was sentenced to one year and one day in prison. She will also serve one year of supervised release after completing her sentence. The total restitution and forfeiture ordered as part of her sentence amounts to $264,645.

The case serves as a reminder of the importance of vigilance and oversight in preventing financial exploitation and ensuring that programs like the PPP are used for their intended purpose.

Source: https://www.justice.gov/usao-mdtn/pr/texas-insurance-broker-sentenced-scheme-defraud-paycheck-protection-program