McCordsville woman sentenced as part of nationwide fraud enforcement

The United States Attorney’s Office for the Southern District of Indiana announced one sentencing as part of a nationwide enforcement action led by the Justice Department’s National Fraud Enforcement Division, the Small Business Administration, and the SBA Office of Inspector General targeting fraud in the SBA’s Paycheck Protection Program (PPP).

The Southern District of Indiana was a key participant in this surge effort. 

From June 12 to September 1, federal prosecutors across the country facilitated fraud enforcement actions spanning over 160 criminal defendants, including approximately 80 newly charged defendants, reaching approximately $245 million dollars in intended loss to American taxpayers.

In the Southern District of Indiana, U.S. Attorney Tom Wheeler announced that Sandra Pierce, 42, of McCordsville, has petitioned the court to plead guilty to two counts of wire fraud for PPP-related fraud involving approximately $632,905 in losses. According to court documents, Pierce was the sole owner of a business called Sandy’s on the Run and purported to help individuals and businesses obtain COVID-19 relief program loans.  In that position, Pierce executed a wire fraud scheme by drafting and submitting 22 fraudulent COVID-19 relief loan applications under the names of others in exchange for more than $100,000 from clients. Additionally, Pierce submitted applications in her own name and received $48,191 from the government.  The total loss was approximately $632,905.

This case is being prosecuted by U.S. Postal Services – Office of Inspector General. Pierce faces up to 20 years in federal prison per count. A sentencing hearing will be set by a U.S. District Court Judge at a later date.

“Exploiting a national crisis for personal gain goes against every fiber of Hoosier decency,” said U.S. Attorney Tom Wheeler. “Programs like the Paycheck Protection Program were created to help honest small business owners survive an unprecedented hardship, not to serve as an opportunity for fraud. Our office will continue working with our federal partners to identify those who took advantage of this moment of need, hold them accountable, and protect relief programs meant to support Hoosiers when they need it most.”

“Pandemic loan relief was meant to keep American small businesses alive during government lockdowns—not line the pockets of fraudsters,” said Attorney General Todd Blanche. “The defendants charged during our summer surge allegedly fabricated businesses, submitted false payroll and revenue claims, stole identities, and concealed foreign ties on their applications— but they will now be prosecuted to the fullest extent of the law.”

“This summer surge shows what is possible when dedicated public servants across the country work together with a single purpose,” said Assistant Attorney General Colin M. McDonald of the National Fraud Enforcement Division. “Our mission is clear: protect taxpayer funds, safeguard the integrity of federal relief programs, and deliver justice to those who exploited them. We will remain steadfast every day—standing shoulder-to-shoulder with our partners—to identify fraud, pursue those responsible, and restore confidence in the programs meant to help American small businesses thrive.”

“Today’s announcement represents the largest-ever action against perpetrators of SBA fraud, with 870,000 suspended borrowers tied to $39 billion in suspected fraudulent PPP and COVID EIDL activity. In partnership with Vice President Vance and the White House Task Force to Eliminate Fraud,  we’re putting fraudsters on notice: the federal government will no longer turn a blind eye to those who stole from taxpayers and exploited programs designed to sustain small businesses during the pandemic,” said SBA Administrator Kelly Loeffler. “With demand letters going out to suspected fraudsters, we’re also sending a clear message that they must repay their debts or face Treasury collections and possible federal law enforcement. Under this Administration, the free ride is over. We are restoring accountability, recovering taxpayer dollars, and protecting SBA programs for the legitimate small businesses they were created to serve.”

“Operation No Doze brings a focused and coordinated approach to pursuing fraud in SBA’s pandemic relief programs,” said SBA Inspector General William Kirk. “By concentrating our investigative resources and working closely with SBA and our law enforcement partners, we are strengthening our ability to identify fraud, recover taxpayer funds, and hold accountable those who exploited programs created to help small businesses in a time of extraordinary need. This initiative makes clear that the passage of time does not diminish our commitment to accountability.”