A Little Rock, Arkansas woman is headed to prison after being convicted of fraudulently obtaining nearly $2 million in federal loans to support businesses affected from Covid-19.
Ganell Tubbs, 41, was sentenced to 41 months in prison, the U.S. Attorney’s Office in Little Rock said in a news release Friday. She obtained Paycheck Protection Program loans for two businesses that she claimed.
Tubbs received a PPP loan for $1.5 million in May after she claimed she had nearly as much in wages and compensation during the first quarter of 2020.
She then used the money to purchase $6,000 in clothing, cosmetic products and electronics online. She also paid off $8,000 in student loans.
Tubbs then obtained a second PPP loan of more than $414,000 after making more “false representations” on the application the release states.
Tubbs was indicted in July. She pleaded guilty to bank fraud in exchange for the dismissal of other charges.
A judge ordered Tubbs to pay $14,000 in restitution, according to the release. The rest of the PPP loan money was recovered.