A Tuscaloosa woman has pleaded guilty fraudulently obtaining a government loan of nearly $100,000 during the COVID-19 pandemic.
Erica Lasha Prewitt, 42, pleaded guilty this week to defrauding the Small Business Administration’s) Paycheck Protection Program, announced Northern District of Alabama U.S. Attorney Prim Escalona and FBI Special Agent in Charge Carlton L. Peeples.
According to the plea agreement, Prewitt in August 2020 received a fraudulent PPP loan totaling $96,875.
In September 2021, Prewitt submitted a PPP Loan Forgiveness Application in which she claimed her business employed 30 people and the full amount of the loan was spent on payroll costs.
Prewitt never owned or operated a business and did not use the PPP loan funds to retain workers during the COVID-19 pandemic. Authorities said she used fake documentation to bolster her request.
The FBI investigated the case. Assistant U.S. Attorney Jonathan “Jack” Harrington is prosecuting.
Prewitt is set to be sentenced on November 26, 2024. The maximum penalty for theft of government funds is 10 years in prison.
Anyone with information about allegations of attempted fraud involving COVID-19 relief funds can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
