CHARLESTON, W.Va. (AP) — A West Virginia lady has admitted accepting greater than $42,00zero in paycheck safety loans underneath a federal COVID-19 help program for companies that weren’t engaged in substantial exercise.
Alexis Ransom, 24, of Logan, pleaded responsible Wednesday to wire fraud in federal court docket in Charleston.
Ransom obtained three loans that have been assured by the Small Enterprise Administration underneath the CARES Act, which offered emergency monetary help to Individuals hit by the financial influence brought on by the pandemic. The SBA would forgive the loans if the borrower established that the proceeds have been used for payroll, lease or different accepted enterprise bills.
Ransom admitted she falsely said that her two companies have been established in 2019 and had substantial revenue. She obtained two paycheck safety loans loans of $14,00zero every for Renae’s Vogue Consulting LLC and a $14,375 mortgage for Momma & Me Boutique, court docket information confirmed.
Ransom later utilized to have all three loans forgiven although she had not spent the mortgage proceeds on permissible enterprise bills. The SBA forgave her loans in August 2021, court docket information confirmed.
Ransom faces as much as 20 years in jail and a $250,00zero effective at sentencing on Nov. 16. She additionally agreed to pay restitution.
