A woman has been accused of fraudulently collecting more than $800,000 through Paycheck Protection Program and Small Business Association loans.
Patricia Ann Gilroy was charged with wire fraud in a federal court in Colorado Wednesday.
Court documents allege that from at least April 2020 through at least April 2021, Gilroy controlled 10 shell companies that had not been active with employees, gross receipts or costs of goods sold during the 12 months prior to Jan. 31, 2020. The companies also had not been in operation on Feb. 15, 2020, or prior to Feb. 1, 2020.
According to court documents, Gilroy submitted eight false and fraudulent PPP applications to lenders on behalf of six of these shell companies. Three of the applications were approved, resulting in a total of $518,135 being sent to bank accounts controlled by Gilroy, court documents state.
In all eight of the applications, Gilroy allegedly made false statements about each shell company's average monthly payroll, number of employees, loan eligibility and loan use intent. She also submitted fraudulent supporting documentation, including false tax forms, according to court documents.
Under the second round of PPP loans, Gilroy allegedly applied for and received loans for two of the shell companies, resulting in an additional $59,916.
Gilroy is also accused of filing false applications to the Economic Injury Disaster Loans (EIDL) program for six of the shell companies. Two of the applications were approved and funded by the Small Business Association, according to court documents, resulting in $294,300 being sent to bank accounts controlled by Gilroy.
She is expected to appear in court on Feb. 23.
