A Tuscaloosa County woman pleaded guilty this week to defrauding the Small Business Administration’s (SBA) Paycheck Protection Program (PPP), according to U.S. Attorney Prim Escalona and Federal Bureau of Investigation (FBI) special agent in charge Carlton Peeples.
Erica Prewitt, 42, of Tuscaloosa, pleaded guilty before U.S. District Court Judge Scott Coogler this week to theft of government funds.
According to the plea agreement, Prewitt received a fraudulent PPP loan totaling $96,875 in 2020. Prewitt made material misrepresentations on the loan application that were supported by fraudulent documentation. In September 2021, Prewitt submitted a PPP Loan Forgiveness Application in which she claimed her business employed 30 people and the full amount of the loan was spent on payroll costs. Prewitt never owned or operated a business and did not use the PPP loan funds to retain workers during the COVID-19 pandemic.
Prewitt is scheduled to be sentenced on November 26, 2024. The maximum penalty for theft of government funds is 10 years in prison.
To connect with the author of this story or to comment, email caleb.taylor@1819News.com.
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