Trio admit filching federal funds intended for relief during lockdowns
RIVERSIDE (CNS) - Three Riverside County residents who conspired to steal more than $3 million in federal funds intended for economic relief during the COVID lockdowns pleaded guilty this week to felony charges.
Vanessa M. Williams, 37, of Corona and Denise Mata, 36, of Moreno Valley each admitted on Tuesday one count of wire fraud, while their co-defendant, 34-year-old Daryl Knighten of Perris, admitted the same charge on Thursday.
The individual plea agreements with the U.S. Attorney's Office were submitted to U.S. District Judge Kenly Kato, who accepted them and scheduled a sentencing hearing for the trio on Jan. 14 at federal court in downtown Riverside.
One other alleged co-conspirator, 35-year-old Mikhail Hoalim of Moreno Valley, is awaiting trial on nine counts of alleged wire fraud. Proceedings are set in his case for November.
According to federal prosecutors, Mata, Williams and Knighten admitted that, between March and August 2021, they filed applications for Paycheck Protection Program loans for themselves, relatives, friends and unnamed persons who were recruited into their scheme.
PPP loans were intended by the government to help recipients cover expenses while their ability to earn a living was disrupted because of the lockdowns stemming from the declared public health emergency.
``The defendants lied to the United States Small Business Administration and banks in connection with the fraudulent PPP loan applications,'' according to a U.S. Attorney's Office statement. ``Each application falsely stated that the PPP loan applicant was self-employed and falsely certified that each loan would be used for permissible business purposes.''
The defendants ultimately utilized tax and other information from over``100 co-schemers'' to perpetrate their scam, prosecutors said.
``Knighten, Williams, Mata and their co-schemers used the illicitly obtained money for their own personal benefit and not for expenses allowable under the PPP,'' according to the government. ``The defendants also submitted fraudulent documents to the SBA and lenders to obtain loan forgiveness for the illegally obtained loans.''
The total loss from the crimes was estimated at roughly $3.5 million.
The defendants are facing a maximum of 20 years in federal prison for the offenses.
