Kansas City Woman Pleads Guilty to PPP Loan Fraud Scheme

Strategic Insights -

Rasheda McDaniel, a 42-year-old woman from Kansas City, Missouri, pleaded guilty in federal court to a scheme to fraudulently obtain Paycheck Protection Plan (PPP) loans, guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). McDaniel used the personal identification information of another person to submit applications for PPP loans in the individual's name, listing false business income and receipts. She was charged with one count of wire fraud and one count of aggravated identity theft.

Key Takeaways:

  • McDaniel and her co-defendant, Briauna Adams, used the personal identification information of another person to submit PPP loan applications with false business income and receipts.
  • The loan applications listed a business with Schedule C gross receipts of $147,412 and a net income of $98,562, while the true business tax return listed zero taxable income and did not have a Schedule C.
  • McDaniel received $20,832 in wire deposits from the PPP loan, which she transferred to her own account and used to make a $15,000 cash withdrawal.
  • Adams pleaded guilty to multiple fraud charges on May 7, 2025, and is awaiting sentencing.
  • McDaniel faces up to 22 years in federal prison without parole.
  • The case was prosecuted by Assistant U.S. Attorney Paul S. Becker and was investigated by the IRS-Criminal Investigation and the Kansas City, Missouri, Police Department.

Statistics:

  • $20,832: Amount wire deposited into McDaniel's account from the PPP loan.
  • $2,000: Amount transferred to Adams' account from the PPP loan.
  • $18,830: Amount transferred to McDaniel's account from the PPP loan.
  • $15,000: Cash withdrawal made by McDaniel from her bank account.
  • $8,333: Average monthly payroll stated in Adams' PPP loan application.
  • $144,080: Gross receipts stated in McDaniel's PPP loan application.
  • $99,982: Profit stated in McDaniel's PPP loan application.

Sources:

  • United States Attorney's Office for the Western District of Missouri
  • IRS-Criminal Investigation
  • Kansas City, Missouri, Police Department
  • Small Business Administration (SBA)
  • Coronavirus Aid, Relief, and Economic Security Act (CARES Act)