Utah Ringleader of COVID-19 Scheme Sentenced to Prison

Summary

A December 23, 2025 press release from the U.S. Attorney's Office for the District of Utah announcing that U.S. District Court Judge David Barlow sentenced Halee Ann Mehlbauer, 40, of Tooele to 15 months' imprisonment and two years' supervised release, and ordered $177,030 in restitution, $48,507 of it jointly with codefendant Timothy Lopez. Mehlbauer had pleaded guilty on September 24, 2025 to wire fraud and money laundering, and Lopez was sentenced to time served. The release states that from about July 15, 2020 to about January 15, 2022 she obtained approximately $177,030 in PPP loans by giving false information and documents in the names of nonexistent businesses. It says the two spent the funds on gambling, debt payments, car rentals and other personal expenses.

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PRESS RELEASE


Utah Ringleader of COVID-19 Scheme
Sentenced to Prison
Tuesday, December 23, 2025

For Immediate Release
U.S. Attorney's Office, District of Utah


SALT LAKE CITY, Utah –Halee Ann Mehlbauer, 40, of Tooele, Utah, was sentenced today
to 15 months’ imprisonment after she fraudulently obtained approximately $177,030 in
COVID-19 Paycheck Protection Program (PPP) Loans, along with her codefendant,
Timothy Lopez, which they did not qualify for. She was also sentenced to two years’
supervised release and ordered by the court to pay $177,030 in restitution, of which
$48,507 is to be paid jointly with Lopez.

The COVID-19 PPP Loans were provided to small businesses for funding to meet specific
obligations, including payroll and rent during the pandemic.

The sentence, imposed by U.S. District Court Judge David Barlow, comes after
Mehlbaurer pleaded guilty on September 24, 2025, to wire fraud and money laundering.
Her codefendant, Lopez was sentenced to time served.

According to court documents and statements made at Mehlbauer’s change of plea and
sentencing hearings, beginning about July 15, 2020, and continuing to about January 15,
2022, Mehlbauer engaged in a Paycheck Protection Program Loan scheme and
fraudulently obtained money through small lenders and the Small Businiss
Administration. She did so by providing false information on multiple PPP-Loan and
other lender applications and provided supporting documents in the name of
nonexistent businesses. Mehlbauer knowingly defrauded the PPP Loan Program alone of
at least $177,030. See prior press release: Utah Residents Accused of Running a COVID-
19 Relief Fraud Scheme Face Federal Charges.

Once approved for PPP Loan funds, Mehlbauer and her codefendant, Timothy Lopez,
used the funds on personal expenses such as gambling, debt payments, car rental
payments, and other miscellaneous expenses that were not related to any authorized
payroll expenses for any of their alleged businesses.
“Every dollar that Mehlbauer received in PPP-Loan funds was taxpayer money,” said U.S. Attorney
Melissa Holyoak of the District of Utah. “Mehlbauer fraudulently obtained funds meant for honest
business owners faced with weathering the storm of a global pandemic and her fraud will not go
unpunished. It is our hope her sentence deters others from taking advantage of government
programs.”

“The defendants helped themselves to funds intended for small businesses struggling to stay in business
during the COVID pandemic,” said SBA OIG’s Western Region Acting Special Agent in Charge Tim
Larson. “SBA OIG and its law enforcement partners will continue to diligently protect the integrity of
the SBA and its programs designed to strengthen small businesses and the economy of the United
States. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their
dedication and pursuit of justice.”

"Driven by greed, these defendants defrauded the government, unlawfully diverting funds that were
meant to support struggling small business owners and workers during a national emergency," said
Special Agent in Charge Robert Bohls of the Salt Lake City FBI. "The FBI is committed to holding
accountable those who exploit government resources for personal profit at the expense of those in
need."

“This sentencing demonstrates the commitment of the Treasury Inspector General for Tax
Administration (TIGTA) to investigate and bring to justice those who victimize the American
taxpayer,” said Krystofor Proev, TIGTA Special Agent-in-Charge. “Fraudulently applying for loans
through a federal program meant to assist Americans in need will be met with aggressive investigation
and prosecution. I want to thank our law enforcement partners and the U.S. Attorney’s Office for
their commitment to this goal.”

The Utah Federal COVID-19 Fraud Strike Force investigated the case, which includes
Homeland Security Investigations (HSI), the Federal Bureau of Investigation (FBI), the
Office of Inspector General’s U.S. Small Business Administration – Office of Inspector
General (SBA-OIG), Department of Defense (DOD), U.S. Department of Housing and
Urban Development (HUD), U.S. Department of Labor – Office of Inspector General
(DOL-OIG), and the U.S. Treasury Inspector General for Tax Administration (TIGTA). The
public is encouraged to share information about the abuse of the Paycheck Protection
Program or other SBA programs by submitting a complaint here.

Assistant United States Attorney Todd C. Bouton of the U.S. Attorney’s Office for the
District of Utah prosecuted the case.

Paycheck Protection Program (PPP)
The Fraud Section leads the Criminal Division's prosecution of fraud schemes that
exploit the Paycheck Protection Program (PPP). Since the inception of the CARES Act,
the Fraud Section has prosecuted over 150 defendants in more than 95 criminal cases
and has seized over $75 million in cash proceeds derived from fraudulently obtained
PPP funds, as well as numerous real estate properties and luxury items purchased with
such proceeds. More information can be found at Justice.gov/OPA/pr/justice-
department-takes-action-against-covid-19-fraud.

Updated December 23, 2025


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