William Powell and Jasmine Spencer have entered guilty pleas in connection with a COVID-19 fraud conspiracy involving Paycheck Protection Plan (PPP) loans. Powell, 34, from Huntington, admitted to conspiracy to commit bank fraud, while Spencer, 32, from Charleston, pleaded guilty to aiding and abetting bank fraud. Both individuals received $15,625 each from fraudulent PPP loans.
Court documents reveal that Kisha Sutton collaborated with Powell, Spencer, and others to secure these fraudulent loans. Sutton submitted applications on behalf of Powell on April 19, 2021, and Spencer on May 27, 2021. The applications falsely claimed that both were sole proprietor hair stylists with a gross income of $75,000 in 2020. However, Powell and Spencer acknowledged the falsification of their IRS Form 1040s used in the application process.
Lenders in Florida and California approved the loan applications for Powell and Spencer respectively. The funds were deposited into their personal accounts in June 2021. Between June 30 and July 20 of that year, Sutton received $2,000 from Powell and $3,000 from Spencer as her share of the proceeds through digital wallet transfers. The remaining funds were spent by Powell and Spencer on personal expenses.
The CARES Act provided forgivable PPP loans to eligible sole proprietors affected by the pandemic. Applicants had to certify operational status as of February 15, 2020, along with documentation of prior income.
Sentencing for Powell is set for July 2, 2025; Spencer will be sentenced on July 9, 2025. Each could face up to 30 years in prison along with fines and restitution obligations.
Powell's and Spencer's cases are part of a larger indictment involving seven individuals accused of conspiring to obtain fraudulent PPP loans totaling $140,625. The indictment against Sutton remains pending.
Acting United States Attorney Lisa G. Johnston praised the investigative efforts of several agencies including the FBI and West Virginia State Police Bureau of Criminal Investigation.
United States District Judge Irene C. Berger oversaw the hearings while Assistant United States Attorneys Jonathan T. Storage, Jennifer D. Gordon, and Holly Wilson are handling prosecution duties.
The public is encouraged to report COVID-19 related fraud via the Department of Justice’s National Center for Disaster Fraud Hotline or its web complaint form.
