Texas woman who received nearly $2 million in Paycheck Protection Program loans amid the ongoing coronavirus pandemic was arrested Tuesday by federal authorities on fraud allegations.
Lola Shalewa Barbara Kasali, of Houston, was charged with making false statements to a financial institution, wire fraud, bank fraud and engaging in unlawful monetary transactions, according to a U.S. Department of Justice statement.
Officials say Kasali, 22, allegedly submitted two fraudulent PPP loan applications for two businesses — Lola’s Level and Charm Hair Extensions — and claimed to have several employees and large payroll expenses.
“According to the charges, however, neither entity has employees nor pays wages consistent with the amounts claimed in the loan applications,” according to the statement.
After receiving more than $1.9 million in loans, Kasali transferred the funds into four additional bank accounts, officials said. Kasali is expected to appear before U.S. Magistrate Judge Christina Bryan in Houston on Wednesday.
This isn’t the first incident of a person being charged for fraudulently receiving PPP loans. In July, a Florida man was charged for receiving $3.9 million in loans to buy himself a Lamborghini sports car, amongst other luxury spending.