Kansas City businesswoman charged with pandemic loan, unemployment benefits fraud
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- Federal grand jury indicted Tiffanie Foster for pandemic benefits wire fraud.
- Foster allegedly submitted false documents to secure over $20,000 in PPP loans.
- She also allegedly obtained $35,000 in unemployment aid while employed
A 48-year-old Kansas City woman was arrested and charged with defrauding the United States government by allegedly fraudulently obtaining pandemic benefits, according to a news release from the U.S. Attorney’s Office in Kansas City.
A federal grand jury indicted Tiffanie Foster this week with two counts of wire fraud for allegedly fraudulently receiving pandemic funds while she was employed full-time as a customer service representative with the Social Security Administration.
The alleged fraud was uncovered by the Pandemic Response Accountability Committee which had identified a list of Social Security Administration employees whose personal information has been used to apply for loans or unemployment benefits, the U.S. Attorney’s Office said in a news release.
According to the charges, Foster allegedly submitted altered tax and bank documents and made fraudulent statements to obtain a Paycheck Protection Program loan under the Coronavirus Aid, Relief and Economic Security Act. The act provided emergency assistance to small business owners and non-profit organizations affected by the COVID-19 pandemic.
What was on the loan application?
In her application, Foster allegedly sought a loan for her business, Exotic Indiscretions LLC, using her own Social Security number for the business. State records show that the company was organized in February 2019 to promote and sell health and wellness products.
Foster allegedly included a 2019 tax form that listed sales of $152,675 and a profit of $6,311. The form Foster filed with her taxes listed $1,350 in sales and a loss of $1,032. Foster also submitted a bank statement from January 2020 indicating she had $11,825 in her business checking and savings account. Bank records showed her actual balance to be .36 cents, according to court documents.
Foster received a loan of nearly $21,000, which was ultimately forgiven by the Small Business Administration.
Woman allegedly applied for unemployment benefits
Foster also allegedly applied for unemployment benefits under Pandemic Unemployment Assistance program in July 2020 through Michigan while she lived in Missouri and was employed by the Social Security Administration. She received nearly $35,000 in unemployment benefits from March 2020 through September 2021, according to court documents.
In her application, Foster indicated she was a resident of Michigan and unemployed due to the pandemic. Foster also indicated she hadn’t applied for unemployment benefits in any other state; however, she had filed for unemployment benefits in Missouri in March 2020.
If convicted, Foster faces up to 20 years in federal prison without parole, as well as three years of supervised release, on each count.
