Michigan woman, former ATF employee pleads no contest to fraudulently getting PPP loan, other pandemic relief money

(WWJ) — A former federal employee who used to live in Metro Detroit has pleaded no contest to charges that she fraudulently obtained federal pandemic relief loans.

Michigan Attorney General Dana Nessel’s office on Wednesday announced 56-year-old Tiesha Johnson, formerly of Farmington Hills, pleaded in Oakland County’s 6th Circuit Court to fraudulently obtaining Paycheck Protection Program (PPP) Loans and an Economic Injury Disaster Loan (EIDL) from the federal government.

PPP loans were meant to cover payroll expenses for businesses during the height of precautions against the COVID-19 pandemic. EIDLs were designed to help small businesses recover from the economic impacts of the pandemic.

Johnson, a former analyst for the federal Bureau of Alcohol, Tobacco, and Firearms, pleaded no contest to three counts of false pretenses, $1,000-$20,000 and agreed to pay $34,675 in restitution.

The AG’s office says Johnson fraudulently got two PPP loans and one EIDL advance totaling that amount while she was a federal employee. Last December when Johnson was extradited from Texas , the AG’s office said she allegedly did have a business, but no employees or payroll expenses.

In July 2022, the U.S. Department of Justice Office of Inspector General referred the matter to the Nessel’s office and requested an investigation into potential federal loan fraud.

Johnson was arrested in Dallas in connection with the fraud charges and extradited back to Michigan.

“The financial relief provided to businesses during the COVID-19 pandemic was a lifeline for countless Michigan residents," Nessel said, per a press release. "I am grateful to the U.S. Department of Justice Office of Inspector General for referring this matter to my office and allowing us to hold Ms. Johnson accountable for defrauding these essential loan programs. This plea not only recovers stolen funds but also sends a clear message that my department will not tolerate the theft of resources intended for those in need."

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