Charleston Woman Pleads Guilty to Role in COVID-19 Relief Fraud Scheme

CHARLESTON, W.Va. – Wendy Ann Thomas, 47, of Charleston, pleaded guilty today to aiding and abetting money laundering. Thomas admitted that $20,833 in proceeds from a criminally derived Paycheck Protection Plan (PPP) loan, guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), was deposited into her personal checking account.

According to court documents and statements made in court, the $20,833 was deposited into Thomas’ personal checking account on June 22, 2021. Thomas admitted that she allowed another individual to direct the PPP loan proceeds to her account, that she knew the deposited PPP loan proceeds were criminally derived, and that the PPP loan was issued in the name of an individual Thomas does not know. Thomas further admitted that she withdrew $17,000 from her personal checking account on June 23, 2021, and knew the cash withdrawal represented most of the criminally derived PPP loan proceeds.

Thomas is scheduled to be sentenced on June 12, 2025, and faces a maximum penalty of 10 years in prison, up to three years of supervised release, and a $250,000 fine. Thomas also owes $20,833 in restitution.

Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the U.S. Department of Homeland Security-Homeland Security Investigations (HSI) and the Kanawha County Sheriff’s Office.

United States District Judge Thomas E. Johnston presided over the hearing. Assistant United States Attorney Jonathan T. Storage is prosecuting the case.

Individuals with information about allegations of fraud involving COVID-19 are encouraged to report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721, or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:24-cr-172.

###