Show-Me State Times

A woman in Missouri has admitted to fraudulently obtaining $135,622 in loans through a pandemic relief program. Edna E. McGowan-Baker, 48, pleaded guilty to wire fraud and bank fraud charges in U.S. District Court in St. Louis on Thursday.

According to the court documents, McGowan-Baker engaged in a scheme between May 2020 and September 2021 to fraudulently obtain Paycheck Protection Program (PPP) loans. She applied for PPP loans for five different companies in her name, even though only two of the companies were actually operational at the time.

McGowan-Baker misrepresented payroll, number of employees, and annual income on the loan applications to receive a higher amount of PPP loan money. She also submitted fraudulent tax forms to support these misrepresentations. Instead of using the loans for their intended purpose of aiding small businesses in paying and retaining employees during the COVID-19 pandemic, she used the money for personal expenses and bills.

McGowan-Baker is facing serious consequences for her actions. She is scheduled to be sentenced on June 5 and could potentially face up to 20 years in prison and hefty fines for wire fraud and up to 30 years in prison and substantial fines for bank fraud.

The FBI conducted the investigation, and Assistant U.S. Attorney Jonathan Clow is prosecuting the case. Individuals with information about pandemic-related fraud are encouraged to contact the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or report via the NCDF Web Complaint Form.

The case serves as a reminder of the severe consequences of committing fraud, especially during times of crisis when relief programs are in place to support those in need.