Mo’ Money Mondays: Feds Cracking Down on PPP Loan Scams

As federal investigators continue to crack down on pandemic-era loan fraud, two high-profile North Carolina cases are making headlines—highlighting the government’s ongoing efforts to hold individuals accountable for misusing COVID-19 relief funds.

In Raleigh, 45-year-old Pastor Mitchell Summerfield pleaded guilty to conspiracy to commit bank and wire fraud after receiving more than $400,000 in fraudulent Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) funds. Prosecutors say Summerfield—lead pastor of the Word of God Fellowship Church and owner of several businesses—submitted multiple fraudulent applications between 2020 and 2021. One of those businesses, “Winning Ways,” claimed to house teen mothers but never operated. Investigators uncovered fake IRS documents and false financial statements used to secure the loans, which were then spent on luxury items, travel, and personal expenses.

Meanwhile, in Charlotte, City Councilwoman Tiawana Brown and her two daughters, Tijema Brown and Antionette Rouse, have been indicted for a similar scheme. The trio is accused of filing at least 15 false loan applications totaling over $124,000. According to the indictment, Councilwoman Brown used $15,000 of the funds on a personal birthday party. Though she repaid the money after learning of the federal investigation, she now faces multiple counts of wire fraud and conspiracy—each carrying up to 20 years in prison. Read the full story here.

Both cases are part of a broader nationwide push by the Department of Justice to investigate and prosecute PPP loan fraud. Billions were distributed under these emergency programs, but officials estimate that a significant portion was obtained through fraudulent means. The message from federal prosecutors is clear: repayment doesn’t erase accountability.