Pandemic Funds, Fabricated Facts

A North Carolina woman has pleaded guilty to federal charges stemming from a scheme that fraudulently obtained more than $600,000 from COVID-19 relief programs intended to help struggling businesses.

According to the U.S. Attorney’s Office for the Western District of North Carolina, Kimberly Ann Weatherell obtained Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) funds for herself and several businesses. Between April 2020 and June 2024, prosecutors say she submitted applications containing false information about business income, employment and other financial details.

The supporting documentation allegedly included fabricated tax returns and fictitious employment data. Those representations helped Weatherell obtain more than $618,000 in federal pandemic relief funds through the U.S. Small Business Administration and SBA-approved lenders.

The case demonstrates how fraudsters can exploit emergency assistance programs by manipulating the information used to establish business activity, income and eligibility. When large amounts of government funding must be distributed quickly, verifying that applicants, businesses and supporting documentation are legitimate becomes especially important.

Weatherell pleaded guilty to wire fraud and money laundering. The wire fraud charge carries a maximum sentence of 20 years in prison, while the money laundering offense carries a maximum of 10 years. A sentencing date had not been set when the guilty plea was announced. The case was investigated by IRS Criminal Investigation.

Beyond pandemic-era programs, the case underscores a broader challenge for government agencies: determining whether the information presented by an applicant accurately represents a real person, business and financial circumstance before taxpayer dollars leave the program.

Today’s Fraud of the Day is based on reporting from the U.S. Attorney’s Office for the Western District of North Carolina regarding COVID-19 relief fraud in 2026.