HOUSTON – Two Texas residents are facing a monumental fraud charge after authorities allege they connived to defraud the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) programs out of $3 million.
Shawn Nicholas Young, 41, from Missouri City, and Trenikia Lashae Banks, 40, from Houston, are accused of submitting numerous fraudulent applications for small business loans through these government-backed programs. According to the charges, they used fake tax documents, including doctored personal and business returns, to bolster their loan applications.
The duo is said to have withdrawn large sums of cash and spent the funds on non-business expenses such as mortgages, home improvement loans, and vehicle purchases. Some proceeds are alleged to have been funneled to Young in kickback payments for fraudulent applications submitted for businesses owned by Banks and others.
Both face up to 20 years imprisonment for conspiracy and wire fraud, with a potential fine of $250,000. The money laundering charge carries an additional 10-year sentence and fines totaling up to $250,000 or twice the value of the laundered funds.
The investigation was a joint effort by Homeland Security Investigations, the Federal Housing Finance Agency – Office of Inspector General (OIG), Treasury Inspector General for Tax Administration, Small Business Administration – OIG, and Federal Deposit Insurance Corporation – OIG. Assistant U.S. Attorneys Stephanie Bauman and Shirin Hakimzadeh are handling the prosecution.
It’s important to note that an indictment is a formal accusation and does not prove guilt. Defendants are presumed innocent until proven guilty in a court of law.
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Key Facts
- State: Texas
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|White Collar Crime|Organized Crime
- Source: Official Source ↗
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