A Roanoke woman has admitted her involvement in a scheme to defraud the Paycheck Protection Program (PPP), pleading guilty to conspiracy to commit wire fraud and money laundering. Jaimeka Michelle Austin, 31, entered her plea in U.S. District Court in Roanoke. She was among 24 individuals indicted in June 2024 on charges including wire fraud, conspiracy, money laundering, making false statements, and emergency benefits program fraud.
The PPP was designed by the Small Business Administration to support small businesses during the COVID-19 pandemic with forgivable loans for job retention and certain expenses. Between June and December 2020, Austin sought advice from a tax preparer about obtaining a tax refund loan and a PPP loan.
In January 2021, Austin and the tax preparer began collaborating on securing PPP loans using false information. They charged $5,000 per applicant for a $20,000 loan. Austin recruited applicants via social media and word of mouth despite knowing many were ineligible as they did not own businesses or were self-employed—conditions required for PPP eligibility.
Austin and her co-conspirators submitted over 100 fraudulent applications, including false statements and inflated business income. She also applied for loans under her business name, Mechelle’s Boutique, inflating its revenue to secure two loans totaling more than $52,000.
In October 2021, Austin used some fraudulent proceeds to purchase a new home in Charlotte, North Carolina. Concerned about federal attention, she concealed the source of funds by involving a third party who falsely represented them as gifts during the home purchase process.
By May 2022, she filed a quitclaim deed granting joint ownership of the property with her mother. In April 2023, they listed it for sale at $398,000 but federal authorities seized nearly $95,000 in sale proceeds under an August 2024 default judgment.
Austin agreed to pay full restitution and accepted a forfeiture money judgment totaling $190,390. Acting U.S. Attorney Zachary T. Lee announced this development alongside Stanley M. Meador of the FBI’s Richmond Division and Kareem A. Carter from IRS's Washington Field Office.
Austin faces up to 20 years imprisonment for conspiracy to commit wire fraud and up to 10 years for money laundering upon sentencing. She is the third individual among those charged to plead guilty.
The case is investigated by the Federal Bureau of Investigation and Internal Revenue Service-Criminal Investigations with prosecution led by Assistant U.S. Attorneys Jason M. Scheff and Lee S. Brett.