Kansas City Woman Pleads Guilty to Paycheck Protection Plan Fraud

KANSAS CITY, Mo. - A Kansas City, Mo., woman pleaded guilty today to wire fraud in a scheme to fraudulently obtain a Paycheck Protection Plan (PPP) loan totaling $20,832, guaranteed by the U.S. Small Business Administration under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. This case is a result of "Operation No Doze" a nationwide enforcement action led by the Justice Department's National Fraud Enforcement Division, the Small Business Administration (SBA), and the SBA Office of Inspector General (SBA-OIG), targeting fraud in the SBA's Paycheck Protection Program (PPP). The Western District of Missouri was a key participant in this surge effort which launched last month.

Dezhon Byrd, 33, claimed to be the sole proprietor of a retail business. On April 4, 2021, Byrd submitted a $20,832 PPP loan application on behalf of the business. In the loan application, Byrd falsely stated that, in 2020, the business had gross receipts of $100,000. Court documents show that Byrd did not operate a business with that annual revenue.

Based on the fraudulent representations Byrd made in the PPP loan application, on April 21, 2021, $20,832 was transferred to Byrd's bank account.

Under federal statutes, Byrd is subject to a sentence of up to 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. The sentencing of the defendant will be determined by the court based on a set of advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.

This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by Small Business Administration- Office of Inspector General.

National Fraud Enforcement Division

On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division ("Fraud Division"). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department's work to combat fraud supports President Trump's Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.