BOSTON — A Plymouth woman has pleaded guilty to money laundering and submitting fraudulent Paycheck Protection Program loan applications on behalf of herself and her father, the U.S. Attorney said Wednesday.
Katherine Reynolds, 66, pleaded guilty on Feb. 12 to two counts of wire fraud and one count of money laundering, U.S. Attorney Leah Foley said in a statement.
U.S. District Court Judge Myong Joun scheduled sentencing for June 23.
In August 2024, Reynolds was indicted by a federal grand jury.
Reynolds submitted two fraudulent loan applications seeking loans for herself and her father pursuant to the PPP, prosecutors said.
The loan applications falsely claimed that Reynolds and her then 86-year-old father earned over $100,000 per year providing massage services out of their home. Prosecutors said the loan applications also included fraudulent tax forms that were not filed with the IRS.
After receiving the funds as a result of the fraudulent applications, Reynolds withdrew $20,000 in cash from the account into which the PPP loans were paid, prosecutors said.
For the charge of wire fraud, Reynolds faces a sentence of up to 20 years in prison, three years of supervised release, and a fine of up to $250,000.
For the charge of money laundering, she faces a sentence of up to 10 years and a fine of up to $250,000.
This is a developing story. Check back for updates as more information becomes available.
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