A federal grand jury in Boston has indicted a Plymouth woman for submitting fraudulent Paycheck Protection Program (PPP) loan applications on behalf of herself and her father fraud and money laundering.
Katherine Reynolds, 65, was indicted on two counts of wire fraud and one count of money laundering. Reynolds was arraigned in federal court on August 8, 2024. In May 2024, Reynolds was charged by criminal complaint.
According to the charging documents, Reynolds submitted two fraudulent loan applications seeking loans for herself and her father pursuant to the PPP.
The loan applications falsely claimed that Reynolds and her then 86-year-old father earned over $100,000 per year providing massage services in their home. The loan applications also included fraudulent tax forms not filed with the IRS.
In addition, on June 25, 2021, Reynolds withdrew $20,000 in cash from the account into which the PPP loans were paid.
The wire fraud charge provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. The money laundering charge provides for a sentence of up to 10 years and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes, which govern the determination of a sentence in a criminal case.
