If getting a loan was as easy as “just sign here,” some people would treat it like a free shopping spree—unfortunately, that’s exactly what happened in this case, except the “shopping spree” ended with a federal charge.
A D.C. resident, Jennifer May, 43, has pleaded guilty to wire fraud after falsely obtaining $1.5 million in federal pandemic relief funds meant to help struggling businesses. Instead of keeping her business afloat, she allegedly poured the money into cryptocurrency speculation and personal spending.
Here’s how it worked
May applied for an Economic Injury Disaster Loan (EIDL) modification in October 2021, claiming she needed the funds for her consulting company, Next Level Partners LLC. The money was intended for essentials like payroll, rent, and utilities. But once approved, those funds took a detour into crypto investments and non-business-related expenses.
Who was targeted?
This scam wasn’t a case of stealing from individuals—it was exploiting federal relief programs. The real victims were taxpayers, small businesses that genuinely needed the aid, and the integrity of government recovery efforts.
A real-life example?
This one is the example. According to U.S. Attorney Jeanine Pirro, May has admitted guilt and is now facing sentencing in December. On top of possible prison time, she’s also been ordered to return the full $1.5 million.
Why should you care?
Fraud like this drains funds from the very programs designed to support businesses during crises. It means fewer resources for legitimate business owners and higher risks of stricter regulations for everyone else in the future. Plus, these cases highlight how crypto speculation often becomes a magnet for misused funds.
Here’s how to protect yourself from falling into similar traps or becoming a victim of fraud:
- Always verify how federal aid programs work before applying. If someone encourages you to bend the rules, walk away.
- Treat relief funds like what they are—lifelines for survival, not gambling money.
- Stay cautious with investments. If you’re using borrowed or relief funds to speculate in risky markets like cryptocurrency, it could raise red flags and have legal consequences.
- Report suspected fraud through the SBA Office of Inspector General or the Department of Justice.
Quick Tip #1: Did you know? The SBA monitors loan usage and can request documentation to prove funds were spent appropriately. Misuse can trigger audits and criminal charges.
Quick Tip #2: Pro Tip: If you’re unsure about how to use relief funds, consult a financial advisor or tax professional—better safe than subpoenaed.
Stay safe, stay informed.
Keywords Defined
- EIDL (Economic Injury Disaster Loan): A federal loan program that provides financial help to small businesses during disasters.
- Wire Fraud: A crime involving the use of telecommunications or the internet to carry out fraud.
- Cryptocurrency: A digital form of currency secured by cryptography, often decentralized and based on blockchain technology.
- Forfeiture: A legal process where the government seizes assets tied to criminal activity.
- SBA (Small Business Administration): A U.S. government agency that supports small businesses through loans, contracts, and counseling.
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