TUSCALOOSA, Ala. (WIAT) - A Tuscaloosa woman pleaded guilty this week to theft of government funds during the COVID-19 pandemic, according to U.S. Attorney Prim F. Escalona and FBI Special Agent in Charge Carlton L. Peebles.
In Aug. 2020, 42-year-old Erica Lasha Prewitt received a fraudulent Paycheck Protection Program (PPP) loan from the Small Business Administration (SBA) that amounted to $96,875. In Sept. 2021, Prewitt submitted a PPP Loan Forgiveness Application. In this application, she claimed that her business employed 30 people, and that her loan was fully spent on payroll costs. According to Escalona, these claims were false, as Prewitt did not own or operate a business during the COVID-19 pandemic.
Prewitt is scheduled for sentencing on Nov. 26, with a maximum sentence of 10 years in prison.
FBI investigated this case, and it is being prosecuted by Assistant U.S. Attorney Jack Harrington.
Anyone with information on cases of fraud relating to COVID-19 relief funds is encouraged to report it to the Department of Justice's National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721. It can also be reported via the NCDF Web Complaint Form.