Central Georgia Woman Found Guilty in PPP Loan Fraud Scheme

In a recent federal court ruling, a resident of Milledgeville, Georgia, has been convicted for her role in a pandemic-era fraud scheme targeting the U.S. Paycheck Protection Program (PPP). The convicted individual, Rosalend Way, 40, was found guilty of wire fraud conspiracy and money laundering after a three-day trial in the Middle District of Georgia. Prosecutors say she and a co‑defendant, James Frank Austin of Americus, strategically misrepresented payroll data and company ownership to secure millions in PPP funds guaranteed by the Small Business Administration.

During the trial, evidence revealed that Way and Austin submitted fraudulent PPP applications for entities such as Propel Opportunity Fund and Austin Smith Center for Community Development (ASCCD). In one instance, Propel claimed 18 employees and a monthly payroll in excess of $420,000, even though IRS and bank records showed no actual payroll activity. The funds were awarded, and large sums were diverted to personal expenses, including the purchase of luxury cars, retail spending, and withdrawals.

The stakes are high

Way faces up to 20 years in prison and fines reaching $1 million, while Austin’s charges include conspiracy, bank fraud, and money laundering, potentially carrying up to 30 years behind bars. Sentencing dates are set for December 2025 for Way and November 2025 for Austin.

Federal officials were vocal about their intent to send a message. U.S. Attorney William R. “Will” Keyes emphasized that exploiting government relief programs undermines public trust. FBI and IRS agents reaffirmed that such fraud diverts funds intended to help businesses struggling during a national crisis and will be punished to the full extent of the law.