Krista Marie Menchaca, a 32-year-old resident of Cross Lanes, West Virginia, was sentenced to three years of federal probation and ordered to pay $21,963.96 in restitution for her role in a COVID-19 relief fraud scheme. The sentencing took place in Charleston.
Court documents state that on May 12, 2021, an individual submitted a Paycheck Protection Plan (PPP) loan application on Menchaca’s behalf to a lender in Arizona. Menchaca admitted as part of her guilty plea that the application included false information and a fabricated IRS Form 1040, Schedule C Profit or Loss from Business. The documents falsely claimed she was a self-employed health practitioner with $93,100 in gross income during 2020. She acknowledged that the tax form was created solely to obtain fraudulent PPP funds.
Following approval of the loan application, $19,395 was deposited into Menchaca’s personal bank account around July 2, 2021. While residing in West Virginia, she used more than $5,000 of these funds for personal expenses.
The CARES Act provided forgivable PPP loans to sole proprietors and self-employed individuals affected by the COVID-19 pandemic. Applicants were required to certify business operations as of February 15, 2020 and submit documentation of prior gross income from either 2019 or 2020.
"Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the West Virginia State Police – Bureau of Criminal Investigation (BCI)."
Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorney Jonathan T. Storage prosecuted the case.
The public is encouraged to report suspected COVID-19 fraud by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or submitting information via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Further details about this case can be found through PACER by searching for Case No. 2:25-cr-68.
