Four Arrested in Louisiana for PPP Fraud

LAFAYETTE, La. (KPEL News) – The economic turmoil caused by the COVID-19 pandemic led to significant government intervention, including programs designed to help struggling businesses and workers. One of the most well-known relief efforts was the Paycheck Protection Program (PPP)—a financial lifeline for small businesses that, unfortunately, also became a magnet for fraud.

Now, federal authorities have charged four Lafayette residents in connection with fraudulent PPP loan applications, adding to the nationwide crackdown on pandemic-related fraud schemes.

What Was the Paycheck Protection Program?

The Paycheck Protection Program (PPP) was launched in 2020 under the Trump Administration to help small businesses keep employees on payroll during lockdowns. Administered by the Small Business Administration (SBA), the program provided forgivable loans to eligible businesses that used the funds for payroll, rent, utilities, and mortgage interest.

How Did the PPP Work?

Low-interest loans were fully guaranteed by the SBA.
Loans were forgiven if used for eligible expenses.
No personal guarantees or collateral were required.
Loan payments were deferred for six months.

Credit: itsarasak thithuekthak

Who Qualified for the PPP?

Eligible applicants included:

Small businesses with 500 or fewer employees
Sole proprietors, independent contractors, and self-employed individuals
Nonprofits, veterans' organizations, and tribal businesses
Businesses that were operational by February 15, 2020

Rampant PPP Fraud: A Nationwide Problem

The PPP, while effective, was plagued by fraud. The SBA and Department of Justice (DOJ) estimate that $200 billion—about 17% of total funds—may have been lost due to fraudulent claims, waste, or improper payments.

Common PPP Fraud Tactics

Fake Businesses – Applicants created nonexistent companies to receive loans.
Inflated Payrolls – Some applicants exaggerated employee numbers to secure more money.
Identity Theft – Criminals used stolen identities to apply for loans.
Shell Companies – Fraudsters formed fake LLCs or reactivated old businesses.
Falsified Documents – Fake tax returns, payroll reports, and IRS forms were submitted.
Misuse of Funds – Some recipients spent money on luxury items instead of business expenses.

Notorious PPP Fraud Cases:

A Florida man used $4 million in PPP funds to buy a Lamborghini.
A Texas reality TV star secured $3.7 million and purchased a Rolls-Royce and jewelry.
A California group of 19 individuals ran a $20 million PPP fraud ring.

Lafayette Residents Arrested for PPP Fraud

Unfortunately, South Louisiana was not spared from these fraudulent schemes. The U.S. Attorney’s Office in Lafayette has charged four local residents for PPP fraud, accusing them of fabricating businesses or inflating their self-employment income to illegally obtain loan funds.

Who Was Charged?

Antoinette Kennedy – Learned about the scheme on Instagram and secured $48,000 in fraudulent loans.
Andre Lane, Tracey Thompson, and Rashinda Harris – Falsified income records, securing loans between $23,000 and $23,500 each.
Dieudonne Nlend – Admitted to falsifying income, must repay $19,000.

In total, these four individuals must repay more than $138,000. Acting U.S. Attorney Alexander Van Hook emphasized that authorities will continue to prosecute PPP fraud cases to recover taxpayer dollars and hold fraudsters accountable.

Federal Investigation & Crackdown

The investigation involved multiple federal agencies, including:

The Small Business Administration (SBA)
The Army Criminal Investigation Division
The Department of Justice (DOJ)

While the PPP officially ended on May 31, 2021, fraud cases are still being uncovered, and federal agencies remain committed to prosecuting those who took advantage of pandemic relief funds.

What This Means for Taxpayers

For hardworking, law-abiding citizens, cases like these serve as a frustrating reminder of how easily government relief programs can be abused. While many small businesses struggled and played by the rules, others took advantage—ultimately costing billions in taxpayer dollars.

As federal investigations continue, expect to see more arrests, convictions, and restitution orders in the coming months.