Jaimeka Michelle Austin, a 32-year-old resident of Roanoke, was sentenced on March 11 to eight years in federal prison and ordered to pay more than $1.8 million in restitution after pleading guilty to conspiracy to commit wire fraud and money laundering related to the Small Business Administration’s Paycheck Protection Program (PPP).
Austin admitted her role in a scheme that involved submitting over 100 fraudulent PPP loan applications, both for herself and others, resulting in nearly $2 million in fraudulent loans. The PPP was designed as a COVID-19 relief program by the SBA to help small businesses retain jobs and cover certain expenses.
According to court documents, Austin began communicating with individuals between June and December 2020 about defrauding another pandemic relief program, the Economic Injury Disaster Loan (EIDL) program. She assisted multiple people in submitting false EIDL applications and received $9,000 herself through this method. In January 2021, she enlisted her tax preparer, Artebia Hobbs, to help obtain fraudulent PPP loans for herself and others. They charged applicants $5,000 each for assistance with securing $20,000 PPP loans.
Austin recruited participants via social media and word of mouth despite knowing most were not eligible because they did not own businesses or were self-employed—requirements for receiving PPP funds. The fraudulent applications included inflated business income figures and fake IRS Schedule C forms. Austin also submitted false information regarding her own business, Mechelle’s Boutique, ultimately receiving two PPP loans totaling over $52,000.
Prosecutors said Austin used proceeds from these schemes on luxury retail purchases at stores such as Burberry and Gucci as well as vacations in Miami, Houston, Los Angeles, and Puerto Rico. She spent over $10,000 during one trip while staying at a high-end resort. In October 2021, she used some of the illicit funds as a down payment on a new home in Charlotte, North Carolina—attempting to conceal the source by routing money through a third party.
In April 2023, Austin listed the Charlotte property for sale with her mother; proceeds from the sale were seized by authorities following an August 2024 default judgment.
Acting United States Attorney Robert N. Tracci announced the sentencing along with Ian Kaufmann of the FBI’s Richmond Division and Kareem A. Carter of IRS Criminal Investigation’s Washington DC Field Office. The Federal Bureau of Investigation and Internal Revenue Service-Criminal Investigations are handling the case while Assistant U.S. Attorneys Jason M. Scheff and Lee S. Brett are prosecuting.
