Tuscaloosa County Woman Pleads Guilty To PPP Fraud

TUSCALOOSA, AL — A Tuscaloosa County woman entered a guilty plea after being charged with defrauding the Small Business Administration's Paycheck Protection Program (PPP) during the COVID-19 pandemic.

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U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Carlton L. Peeples said Tuscaloosa native Erica Lasha Prewitt, 42, pleaded guilty before United States District Court Judge L. Scott Coogler to theft of government funds.

The plea agreement states that in August 2020, Prewitt received a fraudulent PPP loan totaling $96,875 and made material misrepresentations on the loan application that was supported by fraudulent documentation.

What's more, Prewitt submitted a PPP Loan Forgiveness Application in September 2021 in which she claimed her business employed 30 people and the full amount of the loan was spent on payroll costs.

Escalona said Prewitt never owned or operated a business and did not use the PPP loan funds to retain workers during the economic turbulence of the pandemic.

Prewitt will be sentenced on Nov. 26 and faces the maximum penalty for theft of government funds, which is 10 years in prison.

Those with information about allegations of attempted fraud involving COVID-19 relief funds are asked to report it by calling the U.S. Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form.

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