Maryland CEO Indicted for PPP Loan Fraud

Kara DiPietro, a 49-year-old resident of Towson, Maryland, has been indicted on charges of bank fraud related to the submission of fraudulent Paycheck Protection Program (PPP) loan applications. The indictment, announced by U. S.

Attorney Kelly O. Hayes, FBI Special Agent in Charge Jimmy Paul, and U. S.

Small Business Administration Inspector General William W. Kirk, alleges that DiPietro fraudulently sought more than $7. 5 million in PPP loans.

DiPietro, who served as president and CEO of several Maryland companies, including H. M. C.

, Inc. , Holdings Management Company Inc. , and Kinetic Capital LLC, is accused of submitting over 20 fraudulent PPP applications between April 2020 and May 2021.

These applications allegedly included false Employer Identification Numbers (EINs) not assigned by the IRS and falsely certified that the applicant businesses had not previously received First or Second Draw PPP loans.

According to the indictment, eight of these fraudulent applications were funded, resulting in DiPietro receiving over $2.5 million in PPP funds. Prosecutors allege that DiPietro used these funds for expenses not permissible under the PPP, such as renovations to her personal residence.

The charges against DiPietro are part of a broader effort by the Department of Justice to combat fraud related to federal benefit programs. This initiative includes the National Fraud Enforcement Division and is supported by President Trump's Task Force to Eliminate Fraud.

If convicted, DiPietro faces a maximum sentence of 30 years in federal prison for each of the six counts of bank fraud. However, actual sentences for federal crimes are typically less than the maximum penalties, as determined by a federal district judge considering the U.S. Sentencing Guidelines and other statutory factors.

The investigation was conducted by the FBI and the SBA's Office of Inspector General, with the case being prosecuted by Assistant U. S. Attorneys Joseph Wenner and John Mark Mastakas.

The U. S. Attorney's Office commended the efforts of these agencies and individuals in bringing the case forward.

An indictment is not a finding of guilt, and DiPietro is presumed innocent unless proven guilty in a court of law. No court date has been announced yet for the proceedings.