3 VA employees from Belleville charged in scheme to steal COVID-19 relief funds, feds say
Three Belleville residents who worked for the U.S. Department of Veterans Affairs in St. Louis County have been indicted on wire fraud charges of “scheming to falsely obtain” over $20,000 each in COVID-19 pandemic relief funds, the U.S. Attorney’s Office announced Wednesday.
The relief money was part of the Paycheck Protection Program, or PPP, operated by the U.S. Small Business Administration to “offer relief and forgivable loans to struggling businesses.” Under this program, business owners “could apply for loans to offset operational costs for payroll, employee benefits, facility expenses and other bills,” according to a news release from the U.S. Attorney’s Office for the Southern District of Illinois.
The news release states indictments were returned by a grand jury in the federal courthouse in East St. Louis against the following persons:
- Katherine L. Liggins, 36, of Belleville, one count of wire fraud and one count of material false statement for allegedly lying to acquire over $20,000 in Paycheck Protection Program funds.
- Eric C. Scott, 43, of Belleville, one count of wire fraud and one count of material false statement for allegedly applying for and spending over $20,000 in Paycheck Protection Program funds under false pretenses.
- Tamika N. Wilson, 44, of Belleville, two counts of wire fraud, two counts of material false statement and two counts of material false document. Wilson is accused of applying for and receiving over $40,000 in Paycheck Protection Program loans she was not entitled to.
“At the time of the alleged misconduct, Liggins, Scott and Wilson were full-time employees of the Veterans Affairs Regional Office in St. Louis County,” according to the news release.
A representative of the Veterans Affairs agency could not be reached for comment Wednesday regarding the current employment status of Liggins, Scott and Wilson.
“The defendants also used misinformation to apply for loan forgiveness and each was approved,” the news release states.
An indictment alleges Wilson falsely represented to two private lenders that Wilson was the sole proprietor of a Belleville business that had $100,956 in gross revenue in 2019
An indictment alleges Liggins claimed ownership of a spa business in a loan application and falsely stated the business had gross receipts or sales totaling $200,000 in 2020, had expenses of $47,000 in 2020 and and a net profit of $124,000 in 2020.
The indictment against Scott alleges he stated he was the “sole proprietor of a business” in Belleville that had gross income of $105,800 during the 2019 tax year.
A defense attorney was not listed in court records for Wilson, Liggins or Scott.
Wilson, Liggins and Scott are scheduled to appear Sept. 4 in federal court in East St. Louis, according to court records.
The news release states wire fraud convictions are punishable by up to 20 years’ imprisonment, and material false statement and document convictions may lead to up to five years in federal prison.
Agents with the Department of Veteran Affairs Office of Inspector General are contributing to the investigation, and Assistant U.S. Attorney Scott Verseman is prosecuting the case, according to the news release.
“Countless small business owners and employees fell on hard economic times during the COVID-19 pandemic, and PPP loans allowed many to keep their families fed and lights on,” U.S. Attorney Rachelle Aud Crowe said in the news release. “In one of the most prevalent and widespread fraud crimes in history, the greedy individuals who sought to steal from the federal government under false pretenses and enrich themselves with PPP funds will be held accountable under the law.”
