South Bend Woman Ordered to Repay Funds from PPP Loan Fraud

SOUTH BEND – Rachael Robinson, 37 years old, of South Bend, Indiana, was sentenced by United States District Court Judge Damon R. Leichty after pleading guilty to a federal felony for wire fraud, announced Acting United States Attorney M. Scott Proctor.

Robinson was ordered to pay $55, 280.47 in restitution to the victims of the offense.

According to documents in the case, in February and April 2021, Robinson submitted two fraudulent applications for Paycheck Protection Program (PPP) relief funds for a business that did not exist. The PPP program was designed to approve loans to small businesses for job retention and other expenses as part the CARES Act that provided emergency financial assistance to Americans suffering from the economic impact of the COVID-19 pandemic.  As a result of her fraudulent representations, Robinson received about $50,000.00 in PPP funds which she used for her own benefit rather than for any legitimately approved purpose. 

This case was investigated by the Federal Bureau of Investigation, the Department of Housing and Urban Development-Office of Inspector General, and the Internal Revenue Service, Criminal Investigation Division.  The case was prosecuted by Assistant United States Attorneys Luke N. Reilander and Joel Gabrielse.