A Mansfield businesswoman, Tamara Starks, has been sentenced to over seven years in federal prison for her involvement in a fraudulent scheme that secured approximately $8.5 million in Paycheck Protection Program (PPP) loans. This was announced by U.S. Attorney for the Northern District of Texas, Leigha Simonton.

Starks, 42, pleaded guilty to wire fraud in September 2024. On Thursday, U.S. District Judge Mark Pittman sentenced her to 86 months in federal prison and ordered her to pay $4,476,523.73 in restitution.

Court documents reveal that from May 2020 to May 2021, Starks orchestrated a plan to defraud the PPP program using false pretenses. She created and submitted fraudulent loan applications with incorrect payroll information and tax documentation for companies owned by her and her husband. Additionally, she facilitated PPP loans for other individuals.

The scheme involved submitting more than 100 loan applications totaling around $8.5 million, resulting in the disbursement of $4.5 million in PPP funds.

After receiving the funds, Starks instructed recipients to establish fake payrolls through third-party vendors to disguise the use of PPP funds as legitimate expenses. In many instances, she received money back from these "employees" and used the funds for personal expenditures. Loan recipients paid Starks a portion of the proceeds as a "fee" for securing the loans.

The investigation was conducted by the Dallas Field Offices of FDIC-OIG, IRS-Criminal Investigation, and SSA-OIG. Assistant U.S. Attorney Dimitri Rocha and former Assistant U.S. Attorney Nashonme Johnson prosecuted the case.

The Paycheck Protection Program is part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act enacted on March 29, 2020. It was designed to provide financial assistance during the COVID-19 pandemic by authorizing forgivable loans for small businesses aimed at job retention and certain expenses.

Individuals with information about COVID-19 related fraud can report it by contacting the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or through their online complaint form.