CHARLESTON, WV (LOOTPRESS) – A Kanawha County woman pleaded guilty Wednesday to receiving funds from a fraudulent COVID-19 relief loan.
Krista Marie Menchaca, 32, of Cross Lanes, admitted in federal court to receiving $19,395 through a fraudulent Paycheck Protection Program (PPP) loan.
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The funds were meant to assist businesses impacted by the pandemic under the federal CARES Act.
According to court documents, a loan application was submitted in Menchaca’s name on May 12, 2021, falsely claiming she was a self-employed health practitioner who had earned over $93,000 in 2020.
Menchaca admitted the supporting IRS tax form was fabricated solely to obtain the loan.
The loan was approved by a lender in Arizona, and the funds were deposited into Menchaca’s personal bank account on or about July 2, 2021.
Prosecutors said she spent more than $5,000 of the funds on personal expenses while in West Virginia.
Menchaca is scheduled to be sentenced on August 12, 2025. She faces up to 10 years in prison, three years of supervised release, and a $250,000 fine. She must also pay $21,963.96 in restitution.
The case was investigated by the West Virginia State Police – Bureau of Criminal Investigation.
Senior U.S. District Judge David A. Faber is presiding, and Assistant U.S. Attorney Jonathan T. Storage is prosecuting the case.
Authorities urge anyone with information on COVID-19 relief fraud to contact the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or submit a report online at justice.gov/disaster-fraud.
