Kanawha County Woman Pleads Guilty to COVID-19 Relief Fraud Scheme

CHARLESTON, W.Va. – Krista Marie Menchaca, 32, of Cross Lanes, pleaded guilty today to receipt of stolen money. Menchaca received $19,395 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).

According to court documents and statements made in court, on May 12, 2021, an individual submitted a PPP loan application on Menchaca’s behalf to a program lender in Arizona. As part of her guilty plea, Menchaca admitted that the application and an Internal Revenue Service (IRS) Form 1040, Schedule C Profit or Loss from Business, filed with it falsely represented that Menchaca was a self-employed health practitioner who received $93,100 in gross income during 2000. Menchaca further admitted that the IRS Form 1040 was fake and created solely to obtain a fraudulent PPP loan.

The lender approved the fraudulent loan application and $19,395 was deposited in Menchaca’s personal bank account on or about July 2, 2021. While in West Virginia, Menchaca spent more than $5,000 of the PPP loan proceeds on her personal expenses.

The CARES Act made forgivable PPP loans available to qualifying sole proprietors, independent contractors and self-employed individuals adversely impacted by the COVID-19 pandemic, to replace their normal income and for certain other expenses. Applicants were required to certify that they were in operation on February 15, 2020, and provide documentation showing their prior gross income from either 2019 or 2020.

Menchaca is scheduled to be sentenced on August 12, 2025, and faces a maximum penalty of 10 years in prison, up to three years of supervised release, and a $250,000 fine. Menchaca also owes $21,963.96 in restitution.

Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the West Virginia State Police – Bureau of Criminal Investigation (BCI).

Senior United States District Judge David A. Faber 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. 2:25-cr-68.

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