Damisha Brown, a resident of Charleston, West Virginia, has pleaded guilty to conspiracy to commit bank fraud in connection with a Paycheck Protection Program (PPP) loan scheme. Brown admitted to receiving $15,625 from a PPP loan that was obtained fraudulently under the CARES Act.
Court documents reveal that Kisha Sutton collaborated with Brown and others to secure fraudulent PPP loans. On April 25, 2021, Sutton submitted a loan application on behalf of Brown, falsely claiming she earned $75,000 as a sole proprietor hairdresser in 2020. This application included an IRS Form 1040 that was fabricated for the purpose of securing the loan.
A lender in California approved the application and deposited $15,625 into Brown's account on April 30, 2021. Brown acknowledged knowing these funds were from the fraudulent loan and subsequently transferred $3,500 to Sutton as her share. The remainder was spent on personal expenses not eligible under the program.
The CARES Act facilitated forgivable PPP loans for those impacted by COVID-19 who met specific criteria. Applicants needed to certify their business operations as of February 15, 2020, and provide proof of prior income.
Brown is scheduled for sentencing on October 2, 2025. She faces up to 30 years in prison along with potential fines and restitution obligations amounting to $12,125.
Both Brown and Sutton are part of a larger group indicted for similar offenses totaling $140,625 in fraudulent loans. Other defendants include William Powell and Jasmine Spencer who have also entered guilty pleas related to this case. Sentencing for Powell and Spencer is set for July 9, 2025.
The investigation involved efforts from multiple agencies including the FBI and state authorities. Acting United States Attorney Lisa G. Johnston announced these developments while urging individuals with information about COVID-19 related frauds to report them through designated channels.
United States District Judge Irene C. Berger oversaw the proceedings with prosecution led by Assistant United States Attorneys Jonathan T. Storage and Jennifer D. Gordon alongside former Assistant U.S. Attorney Holly Wilson.
