WASHINGTON, D.C. — Wendy Nicole Villatoro, 40, of Washington, D.C., was sentenced today to 15 months in federal prison for submitting fraudulent loan applications, resulting in her illegally securing $844,000 in Paycheck Protection Program (PPP) and Economic Injury Disaster (EID) funds. The U.S. Attorney’s Office for the District of Columbia confirmed the sentence.
Between March 2020 and August 2021, Villatoro submitted applications for eight PPP loans through various financial institutions and 15 EID loans through the Small Business Administration (SBA). The applications included false information about fictitious businesses, inflated payrolls, and exaggerated revenues.
While most of her loan applications were denied, Villatoro successfully obtained more than $844,000. According to the U.S. Attorney’s Office, Villatoro attempted to defraud federal relief programs out of between $2.6 million and $5.5 million.
PPP loans, designed to support small businesses during the COVID-19 pandemic, were intended to cover payroll costs, rent, utilities, and mortgage interest. Borrowers who met the requirements for loan forgiveness had to spend the funds on eligible expenses and allocate a certain portion to payroll.
Instead of using the funds for approved expenses, Villatoro misused the money to pay off student loans, settle a car loan on a BMW SUV, and purchase luxury items. As part of her plea agreement, she has agreed to pay restitution of $844,415.24 and forfeit items purchased with the fraudulent funds, including over 70 pieces of designer clothing and jewelry, along with the BMW SUV.
