A 22-year-old Texas woman has been accused of fraudulently getting $2 million in PPP loans during the pandemic.
Lola Shalewa Barbara Kasali was charged Tuesday with making false declarations to a financial institution, wire fraud, bank fraud and participating in unlawful monetary deals, the Department of Justice announced.
Kasali sent at least two PPP loan applications, one for a company called Lola’s Level and another called Charm Hair Extensions, to cover payroll expenditures, according to prosecutors. The Houston woman got about $1.9 million in loan funds, then supposedly transferred the cash into four separate bank accounts.
But prosecutors declare that neither Lola’s Level nor Charm Hair Extensions has workers or “pays salaries consistent with the amounts declared in the loan applications.”
The CARES ACT, which has dispersed hundreds of billions of dollars in emergency financial help for Americans financially impacted by the pandemic, allows small companies to receive loans with a 1% interest rate to spend for payroll expenses, home loan interest, lease and utilities.
Last month, a House oversight committee reported that countless loans were improperly dispersed, consisting of 10,000 loans amounting to more than $1 billion that went to companies that received more than one loan, an offense of the guidelines. More than 11,000 loans amounting to about $3 billion were offered to business that stopped working to completely full out the application.