Missouri woman sentenced 1 year in prison for pandemic loan fraud

ST. LOUIS (KMOX) - A Jennings, Missouri, woman was sentenced to a year and a day in prison after she fraudulently sought loans during the COVID-19 pandemic.

Juashayla Jane Walls, 31, pleaded guilty to one count of wire fraud in April after it was found she submitted a fraudulent loan applications seeking a total of $55,833 for a fake company called "The Barbie Factory".

Walls falsely claimed that the company was in operation, had four employees and a monthly payroll of $8,000. She also submitted a fraudulent Internal Revenue Service tax form that said employees had been paid a total of $96,000 in wages, tips and other compensation.

In reality, according to her plea agreement, Walls actually used the money on shopping trips and other personal purchases. In one instance, Walls spent nearly $8,000 at a casino.

U.S. District Judge Matthew T. Schelp called the crime “sickening” and “disheartening,” as it came during a worldwide crisis and took money from a program that was intended to help struggling American businesses and jobs during the pandemic.