A Zebulon woman, Loretta Clarice James, 49, was sentenced Thursday to eight years in prison for her involvement in a multi-million-dollar COVID-19 fraud scheme. According to the U.S. Department of Justice (DOJ), James pleaded guilty to conspiracy to commit wire fraud on May 29, 2024. Her co-conspirator, Lakesha Bowles, 43, was sentenced to 30 months in prison in April 2024 for her role in the scheme.
Both women were ordered to repay over $1 million in restitution for defrauding hundreds of victims. The investigation began after several complaints from Wake County residents regarding identity theft and fraud. The investigation, supported by various agencies including the U.S. Department of Homeland Security and the IRS Criminal Investigations, uncovered hundreds of thousands of dollars in fraud.
James and Bowles manipulated the Paycheck Protection Program (PPP), Economic Injury Disaster Loan (EIDL) Program, and the Restaurant Revitalization Fund (RRF) Program by submitting fraudulent loan applications for non-existent businesses or dormant entities. They inflated payroll numbers and recruited others to apply for loans on their behalf, taking a cut of the funds when loans were approved. James also submitted fake EIDL applications and fraudulently received over $500,000 from the program.
In total, James, Bowles, and other co-conspirators collected over $1.5 million in COVID-19 relief funds through this fraudulent scheme. James was also involved in an identity theft scheme where stolen Social Security numbers were used to acquire loans and lines of credit from private lenders.
“This office is committed to holding accountable those who exploited a national crisis and the hardships of others for their personal gain and greed,” said Acting U.S. Attorney Daniel P. Bubar. The DOJ vows to continue working with state and federal partners to pursue justice for those who misuse public relief funds.
