VA Employees Indicted For PPP Fraud, Allegedly Secured Thousands Through False Claims Amid Pandemic

Three employees of the Department of Veterans Affairs in Illinois were indicted this week by a federal grand jury for allegedly defrauding the Paycheck Protection Program (PPP) during the COVID-19 pandemic. The program, created by the U.S. Small Business Administration, was intended to support struggling businesses, but these employees allegedly exploited it for personal gain.

The accused, Katherine Liggins and Eric Scott, each face one count of wire fraud and one count of making false statements, having allegedly secured $20,000 in PPP loans. Tamika Wilson faces more charges, accused of obtaining $40,000 through false applications, with additional charges related to submitting fraudulent documents.

“Countless small business owners and employees fell on hard economic times during the COVID-19 pandemic, and PPP loans allowed many to keep their families fed and lights on,” said U.S. Attorney Rachelle Aud Crowe. “Greedy individuals who sought to steal from the federal government under false pretenses will be held accountable.”

The indictment reveals that the employees also sought loan forgiveness using false information, a tactic that could have further defrauded taxpayers. The investigation, conducted by the VA Office of the Inspector General, highlights the government’s commitment to pursuing fraud within federal relief programs.

If found guilty, the employees could face up to 20 years in prison for wire fraud and five years for making false statements. While these are just formal charges, and the employees are presumed innocent, the case underscores the importance of ensuring that pandemic relief funds are used as intended and that those who abuse the system are held accountable.