DOJ: Four SC residents plead guilty to PPP loan fraud conspiracy

COLUMBIA, SC (WOLO)– According to the Department of Justice, four South Carolina residents pleaded guilty to conspiracy to commit wire fraud and wire fraud for their roles in a scheme to fraudulently obtain millions in PPP loans. The four that pleaded guilty are 53-year-old Lori Hammond, 36-year-old Catherine Needham, 35-year-old Jontrell Wright and 39-year-old Christopher Conrad.

From around June 2020 to January 2021, investigators say Hammond caused fraudulent PPP loan applications to be submitted on behalf of her and her co-conspirators. Officials say Hammond used a deceased person’s identity, misrepresented the number of employees and payroll expenses of the entities applying for the loans, attached fraudulent tax documents and submitted misleading statements. Authorities further allege that Hammond helped the other three individuals fill out applications with false information and submit them to an individual in California who would then submit the application for a fee.

According to investigators, the false claims on the applications led to the PPP loans being approved and funded. Officials say the four defendants used the funds for non-qualifying purposes.

Authorities say the defendants obtained $4,721,638.50 in fraudulent PPP loan funds.

Officials say the four face a maximum penalty of 20 years in prison, a fine of up to $250,000 and three years of supervision after release.