Newport News woman pleads guilty to laundering money taken from a pandemic relief loan program

Date: Sept. 9, 2024

Contact: [email protected]

Newport News, VA - A Newport News woman pled guilty today to laundering proceeds of a pandemic-benefit fraud scheme.

According to court documents, on March 17, 2021, Shenita R. Banks applied for a loan for her company, Wireless Queen, Inc., through the Paycheck Protection Program (PPP), a COVID-19 relief program intended to provide loans backed by the Small Business Administration (SBA) to certain businesses, nonprofit organizations, and other entities to help them retain their employees or stay afloat during the pandemic. Banks incorporated Wireless Queen, Inc., on July 27, 2015, but it had no business operations, employees, or sales in 2020.

In her PPP application, Banks fraudulently claimed that the purpose of the loan was for payroll costs, rent/mortgage interest, utilities, and covered supplier costs. Banks falsely stated that her average monthly payroll costs were $58,900.00. As part of the application, Banks submitted copies of tax returns (IRS Forms 940, 941, and 1120) for tax year 2020, in which she reported payments to employees totaling $705,941.44. However, the IRS has no record of Banks filing these forms for tax years 2018 through 2022 or of Banks filing an individual Form 1040 tax return for those tax years.

On March 24, 2021, Banks' PPP loan application was approved, and on March 25, 2021, Banks electronically signed the PPP application attesting that the information provided was true and accurate and that she understood the criminal penalties associated with providing false statements to the SBA. Banks specifically certified that she was eligible to receive a loan under the rules issued by the SBA and that all loan proceeds would be used only for business-related purposes.

On March 31, 2021, Banks received $145,833 for the awarded PPP funding to her business account held in the name of Wireless Queen Inc., which Banks opened the day before submitting the initial PPP application. On April 5, 2021, Banks laundered $33,030 of the PPP loan funds by withdrawing them from the Wireless Queen bank account.

Banks is scheduled to be sentenced on Jan. 29, 2025, and faces a up to 10 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Kareem A. Carter, IRS Criminal Investigation (IRS-CI) Special Agent in Charge of the Washington D.C. Field Office, made the announcement after U.S. District Judge Jamar K. Walker accepted the plea.

Assistant U.S. Attorneys Therese O'Brien and Mack Coleman are prosecuting the case.

IRS-CI is the criminal investigative arm of the IRS, responsible for conducting financial crime investigations, including tax fraud, narcotics trafficking, money-laundering, public corruption, healthcare fraud, identity theft and more. IRS-CI special agents are the only federal law enforcement agents with investigative jurisdiction over violations of the Internal Revenue Code, obtaining a more than a 90 percent federal conviction rate. The agency has 20 field offices located across the U.S. and 12 attaché posts abroad.

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