Jaimeka Michelle Austin, a 32-year-old resident of Roanoke, was sentenced on March 11 to eight years in federal prison and ordered to pay more than $1.8 million in restitution after pleading guilty to conspiracy to commit wire fraud and money laundering related to the Small Business Administration’s Paycheck Protection Program (PPP).
The case highlights ongoing efforts by federal authorities to address fraudulent activity targeting pandemic relief programs. The PPP was designed as a COVID-19 relief measure, providing forgivable loans to small businesses for job retention and other expenses.
Austin admitted in March 2025 to orchestrating a scheme that involved submitting over 100 fraudulent PPP loan applications, both for herself and others who were not eligible because they did not own businesses or were not self-employed. She also submitted false applications under her business, Mechelle’s Boutique, inflating its revenue and ultimately receiving two PPP loans totaling over $52,000. In total, nearly $2 million in fraudulent loans were obtained through the scheme.
According to court documents, Austin worked with tax preparer Artebia Hobbs to charge applicants $5,000 each for assistance in obtaining $20,000 PPP loans. The funds from these fraudulent activities were used for luxury retail purchases at stores like Burberry and Gucci and vacations including trips to Miami, Houston, Los Angeles, and Puerto Rico. Austin also used proceeds from the scheme as a down payment on a new home in Charlotte, North Carolina, attempting to conceal the source of the funds by routing them through a third party.
Federal authorities seized proceeds from the sale of this property after it was listed in April 2023. An August 2024 default judgment resulted in forfeiture of nearly $95,000 from the sale.
Acting United States Attorney Robert N. Tracci announced the sentencing along with officials from the Federal Bureau of Investigation and Internal Revenue Service-Criminal Investigations. Assistant U.S. Attorneys Jason M. Scheff and Lee S. Brett prosecuted the case.
