A woman from Jennings, Missouri, was sentenced to a year and a day in federal prison after fraudulently obtaining COVID-19 pandemic loans for a nonexistent company. U.S. District Judge Matthew T. Schelp handed down the sentence to 31-year-old Juashayla Jane Walls on Tuesday. Walls was also ordered to repay $55,833 and will be placed on supervised release for five years following her release.
The sentencing followed an investigation into Walls’ fraudulent claims, which included securing loans for a fake business called the “Barbie Factory.” Walls submitted falsified Paycheck Protection Program (PPP) loan applications during the pandemic, including one on August 25, 2020, seeking $20,000 for the “Barbie Factory.” In her application, she falsely claimed that the company was in operation, with four employees and a monthly payroll of $8,000. Walls also submitted a fraudulent Internal Revenue Service tax form, indicating that the company had paid $96,000 in wages.
In court, it was revealed that Walls spent some of the loan funds on personal purchases, including nearly $8,000 at a casino. The investigation also found that she used the money for shopping trips and other non-business-related expenses.
Despite her fraudulent claims, Walls applied for loan forgiveness on March 2, 2021, falsely stating that the funds had been used for payroll, which led to the loan being forgiven. Although a second loan application was denied, Walls submitted another request on April 16, 2021, seeking $20,833. That loan was approved, and Walls successfully applied for loan forgiveness again on August 14, 2021.
In addition to the PPP loan fraud, Walls filed fraudulent applications in September 2021 for the Economic Injury Disaster Loan Program. This Small Business Administration program was designed to assist struggling business owners during the pandemic. Walls falsely claimed that the $15,000 she received would be used for payroll and other business expenses for the “Barbie Factory.”
Walls pleaded guilty in April to one felony count of wire fraud. The FBI investigated the case, with Assistant U.S. Attorney Kyle Bateman prosecuting.
