Three Michigan residents to be sentenced in $3 million COVID-19 fraud scheme
Three Michigan residents have pleaded guilty to federal charges relating to a fraud scheme involving over $3 million in pandemic-era assistance, the U.S. Attorney's Office for the Eastern District of Michigan said.
Rita Shaba, 39, of Macomb, and Samer Kammo, 45, of Shelby Township, pleaded guilty Tuesday to conspiring to commit wire fraud and bank fraud, according to the attorney general's press release. Christina Anasi, 35, of Shelby Township, previously pleaded guilty to the conspiracy, the report said.
Shaba will be sentenced on Jan. 5. Anasi will be sentenced on Jan. 7, and Kammo will be sentenced on Jan. 15.
They each face a sentence of up to 30 years in prison.
The circumstances involved COVID-19 pandemic relief funds, specifically the Paycheck Protection Program. Congress created the PPP in March 2020 to provide emergency assistance to businesses that faced financial challenges at the outbreak of the pandemic. Eligible businesses could apply for loans guaranteed by the Small Business Administration, and later seek to have those loans forgiven.
The district attorney's office said this investigation involved fraudulent PPP applications submitted on behalf of several business entities. "The defendants also caused fictitious payroll, health insurance, bank, and tax records to be submitted in connection with the PPP loan applications," the report added.
Over $3 million in fraudulent PPP loan funds were part of this case. Law enforcement has received about $2.1 million of that money, the report said.
The FBI and the Department of Homeland Security worked on the investigation.