A Dallas woman is facing up to 45 years behind bars after being indicted on 6 counts of wire fraud in connection with a fraudulent PPP loan.
According to the indictment, 52-year-old Kristen Fenrick, formerly of Houston, is one of more than 900,000 Texans who applied for a Paycheck Protection Program (PPP) loan, the COVID-era program designed to help small businesses stay in business during the pandemic.
Fenrick, the owner of Klearly Kristen Inc. a jewelry company, got a $405,000 loan, but the feds say she lied to get it. Besides submitting fraudulent IRS documents to the lender, she also allegedly paid a co-conspirator to assist her in the preparation and submission of the false application.
The money was supposed to be used to keep employees paid while businesses were shut down, instead, she's accused of using the money for personal items like a luxury car.
Both before and after the PPP loan, Fenrick also allegedly made several unsuccessful attempts to secure an Economic Injury Disaster Loan for Klearly Kristen and several other purported businesses.
If convicted, Fenrick faces up to five years in prison for conspiracy to commit wire fraud, a maximum of 20 years on each of the substantive wire fraud counts, and up to 10 years imprisonment for conducting a monetary transaction in criminally derived property. She could also be ordered to pay up to $250,000 in fines.
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