Milledgeville Resident Convicted in $2 Million PPP Loan Fraud Scheme
MACON, Ga. – A Milledgeville woman was found guilty of wire fraud conspiracy and money laundering for her role in a scheme that fraudulently obtained COVID-19 relief funds through the Paycheck Protection Program (PPP), with much of the money spent on luxury cars and personal expenses.
Rosalend Way, 40, was convicted on September 24 of one count of conspiracy to commit wire fraud and one count of money laundering after a three-day trial. She faces up to 20 years in prison and a $1,000,000 fine. Sentencing is scheduled for December 2.
Codefendant James Frank Austin, 51, of Americus, previously pleaded guilty to conspiracy to commit wire fraud, two counts of bank fraud, and two counts of money laundering. He faces up to 30 years in prison and a $1,000,000 fine, with sentencing set for November 19.
According to court records, Way and Austin applied for PPP loans on behalf of their respective organizations—Propel Opportunity Fund and Austin Smith Center for Community Development—claiming payroll expenses and other business costs that were entirely fabricated. Propel’s application falsely reported 18 employees with monthly payroll of $420,558 and included a fraudulent W-3 showing nearly $5 million in 2019 wages, despite IRS records showing no payroll.
As a result, Way and Austin received over $2 million in fraudulent PPP loans. Investigators found that the funds were used for personal luxuries, including a Mercedes-Benz, a Bentley, retail, dining, and cash withdrawals. Approximately $500,000 from Propel’s loan went to Way’s personal account, and Austin used loan funds to pay for Way’s car.
“This case demonstrates our commitment to holding accountable those who exploit taxpayer-funded programs designed to help Americans during a national emergency,” said U.S. Attorney William R. “Will” Keyes. FBI and IRS special agents emphasized that defrauding federal programs carries serious, lifelong consequences.
Anyone with information regarding COVID-19 fraud can report it via the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The FBI and IRS investigated the case, and Assistant U.S. Attorneys Elizabeth Howard and Hannah Couch are prosecuting it on behalf of the government.
