Krista Marie Menchaca, a 32-year-old resident of Cross Lanes, West Virginia, has admitted to receiving stolen funds as part of a COVID-19 relief fraud scheme. Menchaca pleaded guilty to acquiring $19,395 through a Paycheck Protection Plan (PPP) loan improperly secured under the Small Business Administration (SBA) via the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).
Court documents and proceedings reveal that on May 12, 2021, an application for a PPP loan was filed on Menchaca's behalf by an individual in Arizona. Menchaca admitted that the application, which included a falsified Internal Revenue Service (IRS) Form 1040, inaccurately portrayed her as a self-employed health practitioner earning $93,100 in 2000. Menchaca confessed that this form was fabricated solely for the fraudulent acquisition of a PPP loan.
The lender approved the suspect application, and $19,395 was deposited into Menchaca’s personal account around July 2, 2021. She spent over $5,000 of this loan on personal expenses in West Virginia.
The CARES Act facilitated PPP loans for sole proprietors, independent contractors, and self-employed individuals who faced financial challenges due to the pandemic, requiring applicants to confirm operations as of February 15, 2020, and provide documentation of their 2019 or 2020 gross income.
Menchaca's sentencing is set for August 12, 2025. She faces a potential sentence of 10 years' imprisonment, up to three years of supervised release, and a fine of $250,000. Additionally, she is responsible for restitution amounting to $21,963.96.
The announcement was made by Acting United States Attorney Lisa G. Johnston, who praised the investigation by the West Virginia State Police - Bureau of Criminal Investigation (BCI). Senior United States District Judge David A. Faber presided over the hearing, with prosecution by Assistant United States Attorney Jonathan T. Storage.
The public is urged to report suspected COVID-19-related fraud by contacting the Department of Justice's National Center for Disaster Fraud Hotline or submitting information online via their complaint form.
Additional details and related documents are accessible through the U.S. Attorney’s Office for the Southern District of West Virginia's website and can be found on PACER under Case No. 2:25-cr-68.
