Leah B. Foley United States Attorney for the District of Massachusetts | Department of Justice
A Plymouth resident, Katherine Reynolds, has admitted to federal charges of wire fraud and money laundering in connection with fraudulent Paycheck Protection Program (PPP) loan applications. Reynolds, 66, pleaded guilty on February 12, 2026, before U.S. District Court Judge Myong J. Joun. Sentencing is scheduled for June 23, 2026.
According to the U.S. Attorney’s Office in Boston, Reynolds submitted two false PPP loan applications for herself and her father. The documents claimed that both she and her then 86-year-old father earned over $100,000 annually by providing massage services from their home. The applications included tax forms that had not been filed with the IRS. After obtaining the funds through these applications, Reynolds withdrew $20,000 in cash from the account where the loans were deposited.
The maximum penalty for each count of wire fraud is up to 20 years in prison and a fine of up to $250,000. Money laundering carries a potential sentence of up to 10 years and a similar fine amount. Sentences will be determined by the court according to federal guidelines.
U.S. Attorney Leah B. Foley and Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England announced the plea. The Massachusetts Office of the Inspector General assisted with the investigation, and Assistant U.S. Attorney Brian Sullivan is prosecuting.
"The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts," according to information about the COVID-19 Fraud Enforcement Task Force.
In May 2021, the Department of Justice created this task force to coordinate investigations into pandemic-related fraud across multiple government agencies. More details about its work can be found at https://www.justice.gov/coronavirus or https://www.justice.gov/coronavirus/combatingfraud.
Reports about suspected COVID-19 related fraud can be made through the National Center for Disaster Fraud’s web complaint form.
