A Macomb County woman has been sentenced to federal prison for her role in a multi-million-dollar Paycheck Protection Program fraud scheme that exploited pandemic relief funds intended for struggling businesses.
Rita Shaba, 40, was sentenced to 27 months in federal prison after pleading guilty to conspiracy to commit wire fraud and bank fraud, according to the U.S. Attorney’s Office.
Federal prosecutors said Shaba and her co-conspirators submitted fraudulent PPP loan applications for multiple business entities, falsely inflating payroll figures and certifying that the funds would be used for legitimate business purposes. Court records show the group also submitted fabricated payroll, tax, health insurance, and bank records to support the applications.
In total, the scheme generated more than $3 million in fraudulent PPP loan funds. Law enforcement has seized and recovered over $2.1 million to date.
The Paycheck Protection Program was created by Congress to provide emergency assistance to businesses harmed by the Covid-19 pandemic.
Shaba was sentenced by Jonathan J.C. Grey. Her co-defendants, Samer Kammo and Christina Anasi, are still awaiting sentencing.
As part of her sentence, Shaba was ordered to pay $3,294,798.50 in restitution.
According to court records, after learning she was under federal investigation, Shaba messaged a co-conspirator stating she believed she was “going on a long vacation” and “leaving for a few years.”
“Rita Shaba told countless lies in this case. But this is true: when you get caught committing major fraud in our district, we will aggressively prosecute you and seek substantial prison time,” said Jerome F. Gorgon Jr..
Federal Bureau of Investigation Special Agent in Charge Jennifer Runyan said the sentence sends a clear message.
“Rita Shaba diverted pandemic relief funds intended to support workers and small businesses, exploiting a national emergency for personal gain. Fraudulent abuse will not be tolerated,” Runyan said, crediting investigators from the FBI, Homeland Security Investigations, and federal prosecutors for uncovering the scheme.
HSI Acting Special Agent in Charge Jared Murphey said the case underscores the consequences of abusing federal relief programs.
“This sentence demonstrates that individuals who exploit programs meant to help businesses and workers during a crisis will face serious consequences,” Murphey said.
The case was prosecuted by Assistant U.S. Attorney Andrew J. Yahkind, with forfeiture and restitution matters handled by Assistant U.S. Attorney Jessica Nathan.
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