Former D.C. Homeland Security Official Pleads Guilty to $844K PPP Fraud Scheme

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In total, Villatoro’s fraudulent applications sought to net between $2.6 million and $5.5 million. While most of her applications were denied, she managed to secure over $844,000 in combined PPP and EIDL funds.

Misuse of Pandemic Relief Funds

The DOJ revealed that Villatoro used the ill-gotten funds for personal expenses, including paying off student loans, covering a car loan for a BMW SUV, and purchasing luxury items. As part of her plea deal, Villatoro agreed to pay restitution exceeding $844,000 to the federal government and forfeit the luxury goods acquired with the funds. The DOJ’s statement listed more than 70 pieces of designer clothing and jewelry, in addition to the BMW SUV, among the items to be surrendered.

Homeland $844K PPP Scam : Federal Programs Exploited

The PPP and EIDL programs were established to provide financial assistance to small businesses affected by the COVID-19 pandemic. The PPP was designed to help businesses cover payroll, rent, and utilities, with loans carrying a two-year maturity and a 1% interest rate. Meanwhile, EIDLs were intended for small businesses experiencing revenue losses due to the pandemic. Villatoro’s exploitation of these programs highlights the ongoing issue of pandemic-related fraud.