PPP Loan Criminal Gets 42 Months for $500K Fraud, Co-Defendant Guilty of Lying to SBA

“[Tamika Cross] submitted false documents certifying a number of employees and payroll for a business that had neither.  She collected PPP loan proceeds based on lies and helped others do likewise,” says IRS Criminal Investigation (CI) Special Agent in Charge Thomas F. Murdock.

“We are committed to investigating those who defrauded the government and robbed businesses truly in need of pandemic relief.

Co-defendant Davida J. Anderson, 53, of Omaha, was sentenced to four years of probation, with the condition of five months’ home detention, and a fine of $5,000. 

Anderson pleaded guilty in June 2023 to making False Statements to the Small Business Administration. Anderson was also ordered to pay restitution of $3,921.60, in addition to the loan repayments she had already made in the amount of approximately $78,432. 

In the loan applications, Cross misrepresented the average monthly payroll that her purported businesses paid, the net revenue from her purported businesses, and the gross income she received as a sole proprietor. In fact, the businesses did not have employees and thus had no payroll, and Cross did not generate revenue as a sole proprietor.

In addition to loan applications submitted on her own behalf, Cross provided direction and guidance to others concerning creating the appearance of ongoing businesses, creating phony supporting documents, and obtaining larger loans by inflating the amount the applicant businesses purportedly paid in past compensation or had received in revenue.  Cross assisted with preparing fraudulent PPP and EIDL applications on behalf of more than ten other persons. 

The applications substantially inflated the compensation paid by the businesses and the gross revenues earned by the businesses. Cross also prepared fraudulent documents for submission in support of loan applications, such as false tax documents.

Anderson worked with Cross to prepare and submit loan applications that misrepresented payroll for a purported business, revenue for a sole proprietorship and falsely stated she had no other business.  In fact, the business had no employees and Anderson did not earn income as a sole proprietor.  The PPP applications were also supported by false tax documents, some of which Anderson signed. Anderson submitted or caused to be submitted fraudulent applications for loans totaling approximately $118,532, and she obtained $78,432.