Fraud Friday – Mom & Daughter Duo Agree to Forfeit $1.7 Million for EIDL Fraud
January 5, 2024
Delaney Sexton
Contributing Editor
Fraud Friday – Mom & Daughter Duo Agree to Forfeit $1.7 Million for EIDL Fraud
After being arrested in March 2021 for their crimes, Andrea Ayers and her daughter Alicia Ayers decided to enter guilty pleas two years later in March 2023. They admitted guilt to one count of conspiracy to commit wire fraud, one count of wire fraud, one count of false statements, and one count of aggravated identity theft.
The mother and daughter were initially charged with a co-conspirator, Traci Proctor. The three of them used the identities of 300 other individuals to submit 315 false loan applications seeking $3 million in EIDL funds. They decided to take advantage of the EIDL Advances, each one amounting to up to $10,000 that did not have to be repaid to the SBA.
Andrea and Alicia solicited the information of individuals with businesses, some businesses consisting of less than 10 employees and some with businesses that did not actually exist. Alicia Ayers admitted during her hearing that she did not collect the required information from the individuals and instead created false details for the businesses. She also admitted she was aware that what she was doing was illegal. After the proceeds of approved EIDL Advances were sent to the individuals, the Ayers received kickbacks of anywhere from $2,000 to $5,000.
For one applicant, they had heard about Andrea and Alicia through a relative who used their service. This applicant received $10,000 and sent $2,500 to the Ayers. Another applicant did not own a business, but they were not aware that the program was only for small business owners. Upon learning the loans were only for business owners, they told Alicia Ayers not to submit the application. Alicia still submitted the application without that individual’s consent, and that individual filed a complaint with the SBA and police.
In early December, both of the Ayers consented to forfeiture orders which will amount to $1.7 million. Their sentencing is currently scheduled for early this year on February 16th.
Sources:
Westfair Business Journal Article
U.S. Attorney’s Office Arrest Press Release