Three Federal Workers Indicted on PPP Loan Fraud Charges

Summary

A release from the U.S. Attorney's Office reports that a federal grand jury returned indictments charging three Metro East residents with scheming to falsely obtain more than $20,000 each in Paycheck Protection Program funds. Katherine L. Liggins and Eric C. Scott, both of Belleville, are each facing one count of wire fraud and one count of material false statement. Tamika N. Wilson of Belleville is facing two counts of wire fraud, two counts of material false statement and two counts of material false document, and is accused of applying for and receiving more than $40,000 in PPP loans that Wilson was not entitled to. The release says the three were full-time employees of the Veterans Affairs Regional Office in St. Louis County at the time of the alleged misconduct.

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EAST ST. LOUIS, Ill.
– A federal grand jury returned indictments charging three Metro East residents for scheming to falsely obtain more than $20,000 each in pandemic relief funds through the Paycheck Protection Program.
In response to financial hardships created by the COVID-19 pandemic, the U.S. Small Business Administration utilized the Paycheck Protection Program to offer relief and forgivable loans to struggling businesses. Under PPP, business owners could apply for loans to offset operational costs for payroll, employee benefits, facility expenses and other bills.
“Countless small business owners and employees fell on hard economic times during the COVID-19 pandemic, and PPP loans allowed many to keep their families fed and lights on,” said U.S. Attorney Rachelle Aud Crowe. “In one of the most prevalent and widespread fraud crimes in history, the greedy individuals who sought to steal from the federal government under false pretenses and enrich themselves with PPP funds will be held accountable under the law.”
Katherine L. Liggins, 36, of Belleville, is facing one count of wire fraud and one count of material false statement for allegedly lying to acquire more than $20,000 in PPP funds.
Eric C. Scott, 43, of Belleville, is facing one count of wire fraud and one count of material false statement for allegedly applying for and spending more than $20,000 in PPP funds under false pretenses.
Tamika N. Wilson, 44, of Belleville, is facing two counts of wire fraud, two counts of material false statement and two counts of material false document. Wilson is accused of applying for and receiving more than $40,000 in PPP loans she was not entitled to.
“These indictments send a clear message that VA employees will be held accountable if involved in fraudulent activities,” said Special Agent in Charge Gregory Billingsley with the Department of Veterans Affairs Office of Inspector General’s Central Field Office. “The VA OIG thanks the U.S. Attorney’s Office and our law enforcement partners for their efforts in this investigation.”
The defendants also used misinformation to apply for loan forgiveness and each was approved.
At the time of the alleged misconduct, Liggins, Scott and Wilson were full-time employees of the Veterans Affairs Regional Office in St. Louis County.
An indictment is merely a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
Wire fraud convictions are punishable by up to 20 years’ imprisonment and material false statement and document convictions may lead to up to five years in federal prison.
Agents with the Department of Veteran Affairs Office of Inspector General are contributing to the investigation, and Assistant U.S. Attorney Scott Verseman is prosecuting the case.

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