Jasmine Spencer, a 32-year-old resident of Charleston, West Virginia, was sentenced to six months of home detention and three years of supervised release for her involvement in a COVID-19 relief fraud scheme. She was also ordered to pay $15,625 in restitution after admitting to aiding and abetting bank fraud related to the Paycheck Protection Program (PPP), which was established under the CARES Act.
Court documents show that Kisha Sutton conspired with Spencer and others to obtain fraudulent PPP loans. On May 27, 2021, Sutton submitted an application on Spencer’s behalf, falsely listing her as a sole proprietor hair stylist who earned $75,000 in gross income in 2020. The application included an IRS Form 1040 Schedule C that Spencer admitted was fraudulent. As part of her plea agreement, Spencer acknowledged she never earned such an amount as a hair stylist.
A lender based in California approved the loan application, depositing $15,625 into Spencer’s personal accounts on June 28, 2021. Between June 30 and July 9 of that year, Spencer transferred $3,000 from these proceeds to Sutton using a digital wallet app and used the rest for personal expenses.
The CARES Act provided forgivable PPP loans for qualifying self-employed individuals impacted by the pandemic. Applicants were required to certify their business operations as of February 15, 2020 and submit proof of prior income.
Spencer and Sutton were among several people indicted for conspiring to obtain fraudulent PPP loans totaling $140,625. Sutton was found guilty by a federal jury on July 15, 2025; she is scheduled for sentencing on November 13 this year. Three other co-defendants pleaded guilty.
"Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the West Virginia State Police – Bureau of Criminal Investigation (BCI), and the West Virginia State Auditor’s Office (WVSAO) Public Integrity and Fraud Unit (PIFU)."
United States District Judge Irene C. Berger imposed Spencer’s sentence. The case was prosecuted by Assistant United States Attorneys Jonathan T. Storage and Jennifer D. Gordon along with former Assistant U.S. Attorney Holly Wilson.
People with information about COVID-19-related fraud are encouraged to contact the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or file a complaint online at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Additional details about this case can be found through PACER by searching Case No. 2:24-cr-192.
