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A Houston woman has been federally charged for receiving over $3.6 million through Paycheck Protection Program (PPP) loans and allegedly spending the money on a variety of high-end personal purchases.
Underneath The CARES Act, 37-year-old LaDonna Wiggins submitted two PPP loans for her businesses Wiggins & Graham Enterprise LLC and Pink Lady Line. After being approved, court documents state that Wiggins received $3,648,145 in loans — which are allotted to small businesses by the government to be used for things like paying their employees and keeping their enterprises afloat.
Being “charged with bank fraud, making a false statement to a bank, and money laundering,” as reported by local news outlet KHOU11, the source also detailed that, “The Secret Service conducted the investigation into the Wiggins case and Assistant U.S. Attorney Zahra Jivani Fenelon” is set to prosecute it when it goes to trial.
The CARES Act was initially put into action back in March of 2020 as an additional way to help Americans receive financial assistance for their businesses amidst the economic fallout due to the COVID-19 pandemic. A portion of the Act included the distribution of PPP loans — which aim to support small business owners with less than 500 employees.
Concerning what Wiggins allegedly did with the money, ABC13 News reported that “The Justice Department lists some of the purchases as nearly $725,000 for homes in Katy and Cypress, $78,000 for a 2020 Land Rover, and a $63,000 purchase at Chanel. Other purchases listed by officials include $46,000 at Neiman Marcus and $14,000 at Apple.” Additionally, the outlet mentioned, “Wiggins appeared before a U.S. Magistrate” yesterday — Tuesday, March 2nd.
If convicted of the alleged crimes, the Houston resident faces up to 30 years in prison — plus the possibility of a $1 million maximum fine.
To see footage of a reporter visiting one of Wiggins’ alleged businesses, one of her homes, and hear more details about her purchases from ABC13 News, click here.
