Bay Area Woman Sentenced For COVID-19 Relief Funds Scheme: DOJ

SAN JOSE, CA — A Bay Area woman who fraudulently obtained nearly $3 million through COVID relief funds has been sentenced to just under two years in federal prison, according to the United States Attorney's Office.

Santa Clara resident Cassie Will-Darnall, 53, pleaded guilty in January to one count each of bank fraud and wire fraud in connection with fraudulently submitting Paycheck Protection Program (PPP) loan applications during the pandemic.

Federal prosecutors say Will-Darnall submitted her first of two PPP loan applications in May 2020, claiming that her company had 10 employees and a monthly payroll of just over $387,500.

In reality, the company had no employees or payroll. But based on the information the 53-year-old provided, she was approved for a loan of just under $1 million, authorities said.

Two months later, Will-Darnall, acting as the CEO of another company, submitted a second loan application, claiming she had 35 employees and a monthly payroll of just over $816,500. She was again approved for a loan, this time for just over $1.8 million, according to federal prosecutors.

The PPP loans were meant to provide emergency financial assistance to people impacted by the COVID-19 pandemic, providing loans that often didn't have to be paid back, authorities said.

Through this process, Will-Darnall fraudulently obtained more than $2.8 million, authorities said.

On Thursday, a judge sentenced the 53-year-old to one year and six months in federal prison. She was also sentenced to three years' probation following her release, authorities said.