Guilty Pleas and Charges
Two individuals from West Virginia have admitted to their involvement in a scheme to fraudulently obtain Paycheck Protection Program (PPP) loans during the COVID-19 pandemic. William Powell, 34, of Huntington, and Jasmine Spencer, 32, of Charleston, pleaded guilty to federal charges related to defrauding the Small Business Administration (SBA).
Powell pleaded guilty to conspiracy to commit bank fraud, while Spencer admitted to aiding and abetting bank fraud. Each received $15,625 from illegally obtained PPP loans, which were intended to assist small businesses impacted by the pandemic but were acquired through falsified documentation.
Fraudulent Applications and Scheme Details
According to court records, Powell and Spencer worked with co-defendant Kisha Sutton, who submitted PPP loan applications on their behalf in 2021. The applications falsely claimed that each was a sole proprietor hairstylist who earned $75,000 in 2020. Fraudulent IRS Form 1040 Schedule C documents were used to support these claims.
The loans were approved by financial institutions in Florida and California, with funds deposited directly into Powell’s and Spencer’s personal bank accounts. Between late June and mid-July 2021, Powell transferred $2,000 and Spencer transferred $3,000 to Sutton via digital wallet apps as her share of the scheme’s proceeds. The remaining funds were used for personal expenses.
Legal Consequences and Sentencing
The PPP loan program, established under the CARES Act, was designed to provide forgivable loans to self-employed individuals and small business owners to cover payroll and related costs. Applicants were required to show proof of income and business activity as of February 15, 2020.
Powell is scheduled for sentencing on July 2, 2025, while Spencer will be sentenced on July 9, 2025. Each faces up to 30 years in prison, supervised release, a $1 million fine, and restitution of $15,625.
Ongoing Investigation
Powell, Spencer, and Sutton are part of a broader federal investigation into fraudulent PPP loan activity totaling more than $140,000. Seven individuals have been indicted as part of this effort. The case is part of a nationwide crackdown on fraud tied to COVID-19 relief programs.
Authorities continue to encourage individuals with information about pandemic-related fraud to report it to the Department of Justice’s National Center for Disaster Fraud.
