SANTA CLARA – A South Bay woman was sentenced Wednesday to 1½ years in federal prison for fraudulently obtaining more than $2.8 million in pandemic relief funds, prosecutors said.
Cassie Will-Darnall, 53, of Santa Clara, previously pleaded guilty to one count of bank fraud and one count of wire fraud stemming from a pair of Paycheck Protection Program, or PPP, loans she secured, according to the U.S. Attorney’s Office.
In May 2020, Will-Darnell submitted a PPP application as the sole partner of Alternative Health Services Inc., prosecutors said. She falsely stated the company had 10 employees and a payroll of $387,595, when it actually had no employees or payroll.
Based on the bogus information, a lender approved and funded a $968,989 loan, according to prosecutors.
Will-Darnall filed a second PPP application in July 2020, prosecutors said. This time, she falsely stated the firm had 35 employees and a payroll of $816,551, when again it had no employees or payroll.
A lender in turn approved and funded a roughly $1.86 million loan, according to prosecutors.
The Paycheck Protection Program – which was administered by the Small Business Administration as part of the Coronavirus Aid, Relief and Economic Security Act – provided forgivable loans to small businesses for job retention and certain other qualified business expenses. Funds were disbursed by SBA-approved third-party lenders.
In addition to the prison term, a judge ordered Will-Darnall to serve three years of supervised release. Prosecutors said she will return to court Oct. 14 for a forfeiture hearing and Dec. 3 for a restitution hearing.
Will-Darnall is expected to begin serving the sentence on Jan. 7, according to prosecutors.
