A 52-year-old Stafford resident has pleaded guilty to conspiracy to commit wire fraud (Kristen Fenrick)

Summary

An announcement dated October 24, 2024 and datelined Houston, in which U.S. Attorney Alamdar S. Hamdani reports that Kristen Fenrick pleaded guilty to conspiracy to commit wire fraud. It states that Fenrick admitted conspiring to submit false Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) applications to the Small Business Administration (SBA), including a PPP loan of $405,340 to Klearly Kristen Inc. and a $10,000 advance. It says the PPP and EIDL programs lost a total of $415,340. U.S. District Judge Alfred H. Bennett has set sentencing for Jan. 30, 2025, when Fenrick faces up to five years in federal prison and a possible $250,000 maximum fine.

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HOUSTON – A 52-year-old Stafford resident has pleaded guilty to conspiracy to commit wire fraud, announced U.S. Attorney Alamdar S. Hamdani.
Kristen Fenrick admitted the fraud was in connection to false applications through the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) Programs provided through the Coronavirus Aid Relief and Economic Security (CARES) Act.
From March 2020 until February 2022, at the time of the COVID-19 pandemic, Fenrick conspired to submit false and fraudulent applications to the Small Business Administration (SBA) via the PPP and EIDL programs.
Fenrick was the owner of Klearly Kristen Inc., a business engaged in the sale of jewelry and accessories. As part of her plea, she admitted to conspiring to submit a PPP loan application that grossly inflated the number of employees her business purportedly had as well as the business’s average monthly payroll expenses.
In support of the application, she and a co-conspirator she paid for assistance submitted fraudulent IRS documents to the lender. Relying on the false representations in the application, a third-party lender with SBA-delegated authority disbursed a PPP loan to Klearly Kristen in the amount of $405,340 in June 2020.
Fenrick admitted to using at least some of those funds for her own personal benefit including the lease of a luxury vehicle and not for the loan’s intended use. The loan was later forgiven based on continued misrepresentations about the business’s employee headcount and payroll expenses.
Fenrick further admitted she submitted several false EIDL applications for Klearly Kristen and several other purported businesses she owned, most of which were unsuccessful except for a $10,000 advance issued to Klearly Kristen.
Due to her actions, the PPP and EIDL programs lost a total of $415,340.
U.S. District Judge Alfred H. Bennett has set sentencing for Jan. 30, 2025. At that time, Fenrick faces up to five years in federal prison and a possible $250,000 maximum fine. Fenrick was permitted to remain on bond pending that hearing.
The SBA-Office of Inspector General conducted the investigation with the assistance of the Secret Service. Assistant U.S. Attorney Shirin Hakimzadeh is prosecuting the case.

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