Attorney Prim F. Escalona | U.S. Department of Justice
Attorney Prim F. Escalona | U.S. Department of Justice
A Tuscaloosa County woman has pleaded guilty to defrauding the Small Business Administration’s (SBA) Paycheck Protection Program (PPP), according to an announcement by U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation (FBI) Special Agent in Charge Carlton L. Peeples.
Erica Lasha Prewitt, 42, of Tuscaloosa, entered her plea before United States District Court Judge L. Scott Coogler to theft of government funds.
As detailed in the plea agreement, Prewitt obtained a fraudulent PPP loan amounting to $96,875 in August 2020. She made material misrepresentations on the loan application, supported by fraudulent documentation. In September 2021, she submitted a PPP Loan Forgiveness Application claiming her business employed 30 people and that the entire loan amount was used for payroll costs. However, Prewitt never owned or operated a business and did not use the PPP loan funds to retain workers during the COVID-19 pandemic.
Prewitt is scheduled for sentencing on November 26, 2024. The maximum penalty for theft of government funds is ten years in prison.
The FBI conducted the investigation. Assistant U.S. Attorney Jonathan “Jack” Harrington is prosecuting the case.
Anyone with information regarding attempted fraud involving COVID-19 relief funds can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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