Plymouth Woman Pleads Guilty to PPP Fraud and Money Laundering

Summary

A press release from USAO - Massachusetts, published February 18, 2026, says Katherine Reynolds of Plymouth pleaded guilty in federal court in Boston to two counts of wire fraud and one count of money laundering. It says Reynolds submitted two fraudulent Paycheck Protection Program loan applications for herself and her father that falsely claimed they earned over $100,000 per year providing massage services out of their home, and that the applications included fraudulent tax forms that were not filed with the IRS. After receiving the funds, Reynolds withdrew $20,000 in cash from the account into which the PPP loans were paid. U.S. District Court Judge Myong J. Joun scheduled sentencing for June 23, 2026. The wire fraud charge provides for up to 20 years in prison and a fine of up to $250,000.

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BOSTON – A Plymouth woman has pleaded guilty in federal court in Boston to money laundering and submitting fraudulent Paycheck Protection Program (PPP) loan applications on behalf of herself and her father.
Katherine Reynolds, 66, pleaded guilty on Feb. 12, 2026 to two counts of wire fraud and one count of money laundering. U.S. District Court Judge Myong J. Joun scheduled sentencing for June 23, 2026.
In August 2024
, Reynolds was indicted by a federal grand jury.
Reynolds submitted two fraudulent loan applications seeking loans for herself and her father pursuant to the PPP. The loan applications falsely claimed that Reynolds and her then 86-year-old father earned over $100,000 per year providing massage services out of their home.  The loan applications also included fraudulent tax forms that were not filed with the IRS. After receiving the funds as a result of the fraudulent applications, Reynolds withdrew $20,000 in cash from the account into which the PPP loans were paid.
The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. The charge of money laundering provides for a sentence of up to 10 years and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Leah B. Foley and Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England made the announcement. The Massachusetts Office of the Inspector General provided valuable assistance in the investigation. Assistant U.S. Attorney Brian Sullivan of the Major Crimes Unit is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit
https://www.justice.gov/coronavirus
and
https://www.justice.gov/coronavirus/combatingfraud
.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the
NCDF Web Complaint Form
.

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