McCordsville business owner pleads guilty to $600K pandemic relief fraud scheme

INDIANAPOLIS (WISH) — A McCordsville business owner faces prison time after admitting to stealing more than $600,000 through a fraudulent pandemic relief scheme.

Sandra Pierce, 42, pleaded guilty to two counts of wire fraud on Monday in connection with a yearslong effort to defraud the federal Paycheck Protection Program (PPP), federal prosecutors announced in Indianapolis.

Pierce owned a business called Sandy’s on the Run. Federal prosecutors said Pierce claimed to help individuals and businesses get COVID-19 relief loans. Instead, Pierce carried out a wire fraud scheme by drafting and submitting 22 fraudulent loan applications under the names of other people.

In exchange for the fake applications, Pierce took more than $100,000 in fees from her clients. She also submitted applications in her own name and received $48,191 from the government. The total loss to taxpayers was approximately $632,905.

The U.S. Postal Service Office of Inspector General investigated the case. Pierce faces up to 20 years in federal prison for each count. A U.S. District Court judge will set a sentencing date later.

The case is part of a nationwide surge called Operation No Doze. From June 12 to Sept. 1, federal prosecutors across the country charged more than 160 defendants in cases involving roughly $245 million in intended losses.

“Exploiting a national crisis for personal gain goes against every fiber of Hoosier decency,” U.S. Attorney Tom Wheeler said. “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.”

Attorney General Todd Blanche said the relief was meant to keep small businesses alive during government lockdowns.

“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,” Blanche said.

Assistant Attorney General Colin M. McDonald of the National Fraud Enforcement Division said the surge shows what is possible when public servants work together.

“Our mission is clear: protect taxpayer funds, safeguard the integrity of federal relief programs, and deliver justice to those who exploited them,” McDonald said.

Small Business Administration Administrator Kelly Loeffler said the agency has suspended 870,000 borrowers tied to $39 billion in suspected fraudulent activity.

“In partnership with Vice President J.D. 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,” Loeffler said.

SBA Inspector General William Kirk said the focused approach helps investigators identify fraud and recover funds.

The Department of Justice created the National Fraud Enforcement Division in April to investigate those who commit fraud against the public. The effort supports a task force chaired by Vice President J.D. Vance to eliminate waste and abuse in federal benefit programs.

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