LUBBOCK, Texas — A Lubbock woman was sentenced to 2.5 years in federal prison for “concealing a PPP Loan Fraud,” the U.S. Attorney for the Northern District of Texas Leigha Simonton announced on Monday.
According to court documents, Hope Leticia Hastey, 51, founded a company that provided contract services such as speech and occupational therapy.
Along with her company, Radar Supports, federal court records said Hastey also founded Radar Foundations, a non-profit that organized community fundraisers for people with “intellectual limitations.”
The company had about 10 employees and the foundation had none, court records said. Court records stated in May 2020, an assumed name certificate was filed for “Radar Supports Construction,” indicating Hastey as the owner. Court records stated the entity never provided services of any kind and never filed a tax return.
File image of Hope Hastey (Nexstar/Staff)
Hastey hired Andrew Travis Johnson for bookkeeping services. Johnson later pleaded guilty to a bank fraud scheme to obtain loans for Radar Supports, the foundation and the construction entity through the Paycheck Protection Program. The loans were intended to “enable employers to maintain payroll costs during a downturn in the economy caused by the pandemic.”
Officials with the U.S. Attorney’s Office said Johnson “falsely inflated payroll data.”
Officials also said Hastey failed to notify authorities about the fraud and instead made it look like the money was used for payroll. Court documents stated Hastey wrote a check for a colleague at Radar Supports but put it into a bank account that she controlled.
Court documents stated Hastey and Johnson applied for five PPP loans and got nearly $3.5 million.
Ms. Hastey spent the money on personal expenses, including heavy equipment to help family members start a new business; a cash purchase of a new home; home renovations; multiple vehicles; vacations; clothing; cosmetic and dental procedures; college tuition; and expenses for a wedding. All five loans were forgiven.
U.S. Attorney’s Office for the Northern District of Texas
Johnson pleaded guilty to three counts of bank fraud, one count of identity theft and one count of monetary transactions in property derived from specified unlawful activity. He was sentenced to 15 years in prison.
Hastey pleaded guilty to one count of misprision of a felony. U.S. District Judge James Wesley Hendrix ordered her to pay 3,545,894.36 in restitution.
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