Krista Marie Menchaca, aged 32 and a resident of Cross Lanes, has pleaded guilty to the charge of receiving stolen money. Menchaca unlawfully obtained $19,395 from a Paycheck Protection Program (PPP) loan, which was guaranteed by the Small Business Administration under the CARES Act for COVID-19 relief.
Court documents reveal that on May 12, 2021, an application for a PPP loan was submitted on Menchaca's behalf to a lender in Arizona. Menchaca admitted that the application and an accompanying IRS Form 1040, Schedule C, falsely claimed she was a self-employed health practitioner with $93,100 of gross income in 2020. The form was fabricated entirely to secure the fraudulent loan.
The loan was approved and the funds were deposited into Menchaca's bank account around July 2, 2021. While in West Virginia, Menchaca used over $5,000 of the loan for personal expenses.
The CARES Act authorized PPP loans to support sole proprietors, independent contractors, and self-employed individuals financially affected by the pandemic. Recipients were required to certify their operation as of February 15, 2020, and substantiate their prior income.
Menchaca's sentencing is scheduled for August 12, 2025. She faces a maximum of 10 years imprisonment, up to three years of supervised release, and a $250,000 fine. Additionally, she must pay $21,963.96 in restitution.
Acting United States Attorney Lisa G. Johnston praised the investigation by the West Virginia State Police’s Bureau of Criminal Investigation. Senior United States District Judge David A. Faber oversaw the hearing, with Assistant United States Attorney Jonathan T. Storage prosecuting the case.
The public is urged to report suspected COVID-19 fraud by contacting the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or through the online NCDF Web Complaint Form.
Court documents for the case can be accessed on PACER by looking up Case No. 2:25-cr-68.