Damisha Brown, a resident of Charleston, West Virginia, has pleaded guilty to conspiracy to commit bank fraud in connection with a fraudulent Paycheck Protection Plan (PPP) loan. The loan was guaranteed by the Small Business Administration under the CARES Act.
Court documents reveal that Kisha Sutton conspired with Brown and others to secure fraudulent PPP loans. On April 25, 2021, Sutton submitted a PPP loan application on behalf of Brown, falsely listing her as a sole proprietor hairdresser with $75,000 in gross income for 2020. The application included an IRS Form 1040, Schedule C Profit or Loss from Business, which was fabricated to obtain the loan.
A lender in California approved the application and deposited $15,625 into Brown’s personal account on April 30, 2021. Brown admitted knowing these funds were from a fraudulent source. She transferred $3,500 to Sutton as part of their agreement for facilitating the fraudulent loan submission and used the remaining funds for personal expenses.
The CARES Act provided forgivable PPP loans to individuals affected by the COVID-19 pandemic. Applicants had to certify their operation status as of February 15, 2020, and provide documentation of prior income.
Brown faces sentencing on October 2, 2025. She could receive up to 30 years in prison, five years of supervised release, and a $1 million fine. Additionally, she owes $12,125 in restitution.
Brown and Sutton are among seven individuals indicted for conspiring to obtain fraudulent PPP loans totaling $140,625. Co-defendants William Powell and Jasmine Spencer have also pleaded guilty and await sentencing on July 9, 2025. The indictment against Sutton and other defendants is pending.
Acting United States Attorney Lisa G. Johnston praised the investigation by the FBI, West Virginia State Police – Bureau of Criminal Investigation (BCI), and West Virginia State Auditor’s Office Public Integrity and Fraud Unit (PIFU).
United States District Judge Irene C. Berger presided over the hearing. Assistant United States Attorneys Jonathan T. Storage and Jennifer D. Gordon prosecuted the case alongside former Assistant United States Attorney Holly Wilson.
Reports of COVID-19-related fraud can be made via the Department of Justice’s National Center for Disaster Fraud Hotline or its online complaint form.
