Texas woman charged with grifting nearly $2M in coronavirus PPP funds

A 22-year-old Texas woman has been accused of fraudulently obtaining almost $2 million in Paycheck Protection Program loans during the coronavirus pandemic.

Lola Shalewa Barbara Kasali was charged Tuesday with making false statements to a financial institution, wire fraud, bank fraud and engaging in unlawful monetary transactions, the Department of Justice announced.

Kasali submitted at least two PPP loan applications, one for a company called Lola’s Level and another called Charm Hair Extensions, to cover payroll expenses, according to prosecutors. The Houston woman received about $1.9 million in loan funds, then allegedly transferred the money into four separate bank accounts.

But prosecutors allege that neither Lola’s Level nor Charm Hair Extensions has employees or “pays wages consistent with the amounts claimed in the loan applications.”

The CARES ACT, which has distributed hundreds of billions of dollars in emergency financial assistance for Americans economically affected by the pandemic, allows small businesses to receive loans with a 1% interest rate to pay for payroll costs, mortgage interest, rent and utilities.

Last month, a House oversight committee reported that thousands of loans were incorrectly distributed, including 10,000 loans totaling more than $1 billion that went to companies that received more than one loan, a violation of the rules. More than 11,000 loans totaling about $3 billion were given to companies that failed to completely full out the application.