Two residents of West Virginia have admitted to federal charges related to fraudulent Paycheck Protection Program (PPP) loans, according to the U.S. Attorney’s Office for the Southern District of West Virginia.
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. Authorities stated that both individuals unlawfully obtained PPP loans totaling $15,625.
Federal prosecutors revealed that Kisha Sutton, 44, collaborated with Powell, Spencer, and others to submit fraudulent loan applications. Court documents indicate that Sutton applied for Powell’s PPP loan on April 19, 2021, and Spencer’s on May 27, 2021, falsely listing them as self-employed hairstylists with an annual income of $75,000 in 2020.
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The applications also included falsified IRS tax documents to support the false claims. Powell and Spencer later acknowledged that they had never earned the reported income and that the documents were fabricated solely to obtain loan approval.
Powell’s loan was processed by a lender in Florida, while Spencer’s was handled by a California-based financial institution. Both received their funds in June 2021. Prosecutors reported that Powell sent $2,000 to Sutton, while Spencer transferred $3,000 using a digital payment platform. The remaining funds were spent on personal expenses.
Sentencing hearings are scheduled for July 2 for Powell and July 9 for Spencer. Each defendant could face a maximum of 30 years in prison, a $1 million fine, and five years of supervised release. Additionally, both must repay the full amount of $15,625.