According to authorities, the woman pleaded guilty in September 2024 to wire fraud.
MANSFIELD, Texas — A Mansfield woman has been sentenced to over seven years in federal prison for her role in a fraudulent scheme to gain around $8.5 million in forgivable Paycheck Protection Program (PPP) loans, the U.S. Attorney’s Office for the Northern District of Texas announced Thursday.
According to the attorney’s office, 42-year-old Tamara Starks was sentenced to 86 months in prison by U.S. District Judge Mark Pittman after pleading guilty to wire fraud in September 2024. Pittman also ordered Starks to pay $4,476,523.73 in restitution.
The attorney’s office said Starks came up with a scheme from May 2020 through May 2021 to defraud the PPP program through “material false pretenses.” Starks reported false payroll information and tax documentation of businesses owned by her and her husband while submitting PPP loan applications, according to the attorney’s office.
Starks, the attorney’s office said, submitted over 100 PPP loan applications which totaled $8.5 million and she received $4.5 million in funds.
After the loans were funded, Starks instructed recipients to create fake payrolls through third-party vendors to make it seem as though the funds were being used legitimately. However, the attorney’s office said Starks received money back from their “employees” and used it for personal expenses. After the loans were disbursed, recipients paid Starks some of the money for securing the loan.