A Newport News woman, Shenita R. Banks, 50, has admitted to laundering money from a fraudulent Paycheck Protection Program (PPP) loan meant to help businesses stay afloat during the COVID-19 pandemic.
Court documents reveal that on March 17, 2021, Banks applied for a PPP loan under her company, Wireless Queen, Inc., which was incorporated in 2015 but had no business activity or employees in 2020. Despite this, Banks claimed on her loan application that she needed the funds for payroll, rent, utilities, and other expenses, reporting a hefty $58,900 in monthly payroll costs. To back up her application, she provided false tax documents showing over $705,000 in employee payments for 2020. However, the IRS had no record of Banks filing any tax returns from 2018 to 2022.
A week later, Banks’ PPP loan for $145,833 was approved, and the funds were deposited into her business account. Shortly after, Banks withdrew $33,030 from the account, essentially laundering the money.
Banks is facing a potential sentence of up to 10 years in prison, with her sentencing scheduled for January 29, 2025. However, federal sentences are often less than the maximum, with the final decision up to the court after considering sentencing guidelines.