A Green County, Kentucky woman was sentenced yesterday to 12 months and 1 day in federal prison for submitting nine fraudulent Coronavirus Aid, Relief, and Economic Security (CARES) Act applications.
According to court documents, between April 2020 and July 2020, Mandy Ellen Bauer age 41, of Greensburg, is charged filing nine fraudulent applications for various CARES Act financial assistance programs, including Paycheck Protection Program (PPP) loans, Economic Injury Disaster Loans (EIDL), and advance payment of tax credits, resulting in an attempted theft of over $230,000. In those false applications Bauer exaggerated the gross revenues, number of employees, and payroll of her company, Family Personal Sales. All of Bauer’s fraudulent applications were rejected and she did not receive any funds.
PPP loans were designed to provide a direct incentive for small businesses to keep their workers on the payroll. Under this program, the Small Business Administration (SBA) would forgive all or part of loans if all employees were kept on the payroll for eight weeks and borrowers submitted documentation confirming that the loan proceeds were used for payroll, rent, mortgage interest, or utilities.
EIDLs provided loan assistance (including $10,000 advances) for small businesses and other eligible entities for loans up to $2 million. The EIDL proceeds could be used to pay fixed debts, payroll, accounts payable, and other bills that could have been paid had the disaster not occurred.