E. Martin Estrada, U.S. Attorney | U.S. Attorney's Office for the Central District of California
A Los Angeles woman has been sentenced to five years in federal prison for fraudulently obtaining over $2 million in COVID-19 relief loans and attempting to secure nearly $1.3 million in pandemic-related tax credits, according to the Justice Department.
Casie Hynes, 39, received her sentence from United States District Judge Hernán D. Vera, who also ordered her to pay restitution amounting to $2,376,168. In April 2024, Hynes admitted guilt to charges of wire fraud and false claims.
Acting United States Attorney Joseph McNally commented on the case: "The defendant exploited a crisis to line her own pockets, diverting vital relief funds from businesses that needed the money." He added that the sentence serves as a warning against misappropriating government relief funds.
Between June 2020 and December 2021, Hynes submitted over 80 fraudulent applications for Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDL). These applications were made under approximately 20 company names through banks and the United States Small Business Administration (SBA), with Congress having established these programs to aid businesses during the pandemic.
Hynes used both existing and newly created companies' names for these applications, including Nasty Womxn Project and She Suite Collective. The applications included unauthorized personal information and signatures of individuals not involved with these companies. Additionally, she provided misleading details about employee numbers, payrolls, and company ownership. To support her claims, she fabricated tax documents and bank statements.
As a result of Hynes' fraudulent activities, banks and the SBA approved loans which were then deposited into accounts she controlled for personal use. She acknowledged intending losses of around $3,174,323 while receiving approximately $2,255,244 from this scheme.
In another related scam involving some of the same companies used in her loan frauds, Hynes submitted false tax forms seeking refunds from the IRS. This was done despite knowing these entities had minimal operations or employees. Her fraudulent claims aimed at securing about $1,255,703 in COVID-19 tax credits went unpaid by the IRS.
The investigation was conducted by IRS Criminal Investigation with Assistant United States Attorney Kristen A. Williams prosecuting the case.
The Attorney General established a COVID-19 Fraud Enforcement Task Force on May 17, 2021. Its purpose is to enhance efforts against pandemic-related fraud by coordinating across federal agencies to identify fraudulent activities and prosecute offenders effectively.
For further information on reporting potential COVID-19 relief program frauds or allegations of attempted fraud involving COVID-19 assistance can be reported via various channels provided by the Justice Department's Civil Division’s Fraud Section or National Center for Disaster Fraud Hotline.
