A North Texas woman has been indicted on federal charges for allegedly obtaining more than $680,000 in COVID-19 relief funds through fraudulent loan applications and using some of the money to help build a home in Cedar Hill.
According to the U.S. Attorney’s Office for the Northern District of Texas, a federal grand jury returned a 10-count indictment against 50-year-old April Watson, also known as April Watson Horton and April Shawnette Watson.
Watson is charged with four counts of wire fraud, two counts of bank fraud and four counts of engaging in monetary transactions involving property derived from specified unlawful activity.
Prosecutors allege Watson obtained Paycheck Protection Program and Economic Injury Disaster Loans between April 2020 and October 2021 by submitting fraudulent applications for businesses she owned and operated, including Exotic Bliss Beauty LLC, Brain Evolution LLC and Southern Home Ventures LLC.
The indictment alleges Watson submitted fabricated payroll summaries and IRS documents, including W-2 and W-3 forms that purportedly had been prepared by an outside payroll company.
Investigators determined that the payroll company had not generated the forms, according to prosecutors. The businesses also had not filed tax returns reporting wages or gross revenues for 2019 or 2020.
The alleged scheme resulted in three separate disbursements totaling $680,492. Watson allegedly received $210,698 in PPP loans from Kabbage Inc., $299,800 in EIDL funds directly from the U.S. Small Business Administration and another $169,994 in PPP funding from JPMorgan Chase.
Prosecutors further allege that Watson used some of the money for personal purposes. More than $114,000 was transferred toward construction of a residence in Cedar Hill, while another $40,000 was allegedly wired to an associate.
“Emergency relief programs were enacted as a vital lifeline to keep struggling businesses afloat during the pandemic—not to subsidize private home construction and luxury purchases,” U.S. Attorney Ryan Raybould said in a statement.
Watson made her initial court appearance Oct. 23.
If convicted, she faces a maximum sentence of 20 years in federal prison for each wire fraud count, up to 30 years for each bank fraud count and up to 10 years for each unlawful monetary transaction count.
The federal government is also seeking forfeiture of the Cedar Hill residence and a monetary judgment for the full amount of the alleged illicit proceeds.
The investigation was conducted by IRS Criminal Investigation and Homeland Security Investigations as part of the Dallas El Dorado Task Force. Assistant U.S. Attorney Elise Aldendifer is prosecuting the case.
An indictment is an allegation, and Watson is presumed innocent unless and until proven guilty in court.
