Venester Fayne Pleads Guilty to PPP Loan Scam

A Missouri woman has pleaded guilty to charges related to a brazen scheme to steal millions from a federal program intended to help small business owners during the COVID-19 pandemic.

Venester Fayne, 57, of Kansas City, Missouri, pleaded guilty to one count of wire fraud and one count of money laundering in connection with her role in the Payroll Protection Program (PPP) loan scam.

According to investigators, Fayne applied for a PPP loan on behalf of a company she controlled in May 2020. To receive the loan, she submitted fraudulent federal income tax documents with false information about the company’s gross sales. The documents, however, had never been filed with the Internal Revenue Service (IRS).

Federal law requires borrowers to use PPP funds only for certain qualified expenses. But Fayne had other plans. She spent most of the money she received on personal expenses like jewelry and other luxury items.

In addition to the PPP loan, Fayne also fraudulently obtained an Economic Injury Disaster Loan (EIDL) loan through the U.S. Small Business Administration for a total of $600,284 in fraudulent PPP and EIDL loans.

Fayne is scheduled to be sentenced on February 18, 2025, and faces a maximum penalty of 30 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The U.S. Secret Service is investigating the case, and Assistant U.S. Attorney Chris Oakley is prosecuting the case.

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