William Powell and Jasmine Spencer have pleaded guilty to charges related to a COVID-19 fraud conspiracy involving Paycheck Protection Program (PPP) loans. Powell, from Huntington, admitted to conspiracy to commit bank fraud, while Spencer, from Charleston, confessed to aiding and abetting bank fraud. Each received $15,625 from fraudulent PPP loans under the CARES Act.
Court documents reveal that Kisha Sutton conspired with Powell and Spencer to secure these fraudulent loans. Sutton submitted applications on their behalf in 2021, falsely claiming they were sole proprietor hair stylists with a $75,000 income in 2020. Both acknowledged that their IRS Form 1040 submissions were fabricated for loan approval.
A Florida lender approved Powell's application and a California lender approved Spencer's. The proceeds were deposited into their accounts in June 2021. Between June 30 and July 20, Sutton received $2,000 from Powell and $3,000 from Spencer as her share of the proceeds through a digital wallet application. The remaining funds were spent on personal expenses by Powell and Spencer.
The CARES Act provided forgivable PPP loans for individuals impacted by the pandemic who could certify operations as of February 15, 2020, and show prior income documentation.
Sentencing is scheduled for July 2 for Powell and July 9 for Spencer. They each face up to 30 years in prison, five years of supervised release, a $1 million fine, and owe $15,625 in restitution.
Powell, Spencer, Sutton from Jersey City along with four others face charges for conspiring to obtain fraudulent PPP loans totaling $140,625. Their indictment remains pending; all are presumed innocent until proven guilty.
Acting U.S. Attorney Lisa G. Johnston praised the investigative work by the FBI, West Virginia State Police BCI, and WVSAO PIFU. United States District Judge Irene C. Berger oversaw the hearings with Assistant U.S. Attorneys Jonathan T. Storage, Jennifer D. Gordon, and Holly Wilson prosecuting.
Fraud allegations related to COVID-19 can be reported via the Department of Justice’s National Center for Disaster Fraud Hotline or its web complaint form.
Further information is available on the U.S. Attorney’s Office website for the Southern District of West Virginia or PACER under Case No. 2:24-cr-192.