A St. Louis woman has been sentenced to two years in prison for conspiring to defraud a COVID-19 pandemic relief program. District Judge Sarah E. Pitlyk handed down the sentence to Jeannine Buford, 46, for her role in a scheme to obtain a fraudulent Paycheck Protection Program (PPP) loan.
In April 2020, Buford altered the name of an existing company to Couture Trading Inc. with the Montana Secretary of State’s Office, listing herself as president and Porshia L. Thomas as the director, vice president, secretary, and treasurer. On July 15, 2020, Thomas, with Buford’s assistance, submitted a fraudulent PPP loan application for Couture Trading.
The application falsely claimed the company operated in California, employed 15 people and had an average monthly payroll of $120,000. The loan was purportedly for salaries and business expenses, supported by fake company bank records.
The bank issued a $291,000 PPP loan on Sept. 8, 2020. Subsequently, Thomas wired $10,000 to Buford and wrote her a $65,000 check. Buford spent the funds on personal expenses, including food, clothing, a $14,000 deposit on a 2017 BMW X6, a $5,000 couch and other furniture, and $1,855 to rent a luxury apartment in downtown St. Louis.
The bank managed to recover $206,000 of the loan money after detecting irregularities.
Assistant U.S. Attorney Derek J. Wiseman noted in a sentencing memo that for many Americans, the COVID-19 pandemic caused significant financial hardship. However, Buford viewed it as an opportunity to enrich herself with funds intended for those struggling due to the pandemic. The memo stated that Buford’s crime was driven purely by greed.
Buford has a history of persistent fraud dating back to 1999, including six felony fraud convictions for crimes such as forging checks and selling counterfeit handbags.
In February, Buford pleaded guilty to wire fraud conspiracy. Thomas, now 33, pleaded guilty to a bank fraud charge and has been sentenced to five years of probation. Both were ordered to repay the fraudulently obtained funds.
The U.S. Postal Inspection Service and Internal Revenue Service – Criminal Investigations conducted the investigation. Assistant U.S. Attorney Derek J. Wiseman is prosecuting the case.
