CHARLESTON, WV (LOOTPRESS) – Two West Virginia residents pleaded guilty Tuesday to charges related to a fraudulent scheme to obtain Paycheck Protection Program (PPP) loans, federal authorities announced.
William Powell, 34, of Huntington, pleaded guilty to conspiracy to commit bank fraud, while Jasmine Spencer, 32, of Charleston, admitted to aiding and abetting bank fraud.
Both received $15,625 in proceeds from fraudulently obtained PPP loans, which were guaranteed by the Small Business Administration (SBA) under the CARES Act.
According to court documents, Powell and Spencer worked with co-defendant Kisha Sutton, 44, of Jersey City, New Jersey, to secure fraudulent PPP loans.
Sutton submitted applications on their behalf in 2021, falsely listing them as sole proprietor hair stylists who earned $75,000 in 2020.
The applications included fraudulent IRS Form 1040s, which Powell and Spencer admitted were created solely to qualify for the loans.
A PPP lender in Florida approved Powell’s loan, while a lender in California approved Spencer’s. The funds were deposited into their personal accounts in June 2021.
Powell and Spencer then transferred portions of the money to Sutton using a digital wallet application and spent the rest on personal expenses.
The CARES Act provided forgivable PPP loans to self-employed individuals and small business owners impacted by the COVID-19 pandemic.
Applicants were required to certify their business operations and provide documentation of prior earnings.
Powell is set to be sentenced on July 2, 2025, and Spencer on July 9, 2025. Both face up to 30 years in prison, five years of supervised release, and a $1 million fine. They must also repay $15,625 each in restitution.
Powell, Spencer, and Sutton are among seven individuals indicted in connection with a broader conspiracy to fraudulently obtain PPP loans totaling $140,625. The case against Sutton and the other defendants remains pending.
An indictment is an allegation, and all defendants are presumed innocent unless proven guilty in court.
The FBI, West Virginia State Police Bureau of Criminal Investigation, and the West Virginia State Auditor’s Office Public Integrity and Fraud Unit investigated the case.
Assistant U.S. Attorneys Jonathan T. Storage, Jennifer D. Gordon, and Holly Wilson are prosecuting the case before U.S. District Judge Irene C. Berger.
