A Michigan woman has been sentenced to prison after pleading guilty in a sprawling Paycheck Protection Program fraud case that funneled millions in pandemic relief through fake payroll and financial records.
Federal authorities say Rita Shaba, 40, admitted guilt in a scheme that produced a string of false PPP loan applications and doctored supporting documents. She was handed a 27-month federal prison sentence after pleading guilty to conspiring to commit wire fraud and bank fraud.
According to court materials, Shaba and others submitted fraudulent PPP applications for multiple business entities that misrepresented payroll and certified funds would be used for legitimate business expenses. Investigators found fabricated payroll ledgers, sham health insurance documents, bogus bank statements, and falsified tax records submitted to justify the loans.
Prosecutors say those false claims produced more than $3 million in PPP proceeds, and law enforcement has recovered over $2.1 million so far. The Paycheck Protection Program was created by Congress to support businesses hurt by the Covid-19 pandemic, and officials stress that the program’s purpose was to preserve payrolls and keep small businesses afloat.
Shaba’s sentence was imposed by Judge Jonathan J.C. Grey, while co-defendants Samer Kammo and Christina Anasi remain awaiting sentencing dates. The court also ordered Shaba to repay the money she helped take, with a restitution figure specifically set at $3,294,798.50.
When investigators closed in, court records show Shaba messaged a co-conspirator and wrote that she thought she was ““going on a long vacation” and “leaving for a few years.” The exchange became part of the evidence of her awareness that the scheme was unlawful and that she faced a lengthy absence from the community.
Prosecutors did not soften their language. “Rita Shaba told countless lies in this case. But this is true: when you get caught committing major fraud in our district, we will aggressively prosecute you and seek substantial prison time,” stated U.S. Attorney Jerome F. Gorgon Jr. Gorgon.
Investigators from multiple agencies carried out the probe, and they emphasized the broader consequences of abusing relief programs. “When federal relief programs are fraudulently abused, accountability must follow,” said Jennifer Runyan, Special Agent in Charge of the FBI Detroit Field Office. “Rita Shaba diverted pandemic relief funds intended to support workers and small businesses, exploiting a national emergency for personal gain. The sentence imposed demonstrates that fraudulent abuse will not be tolerated. This result would not be possible without the hardworking investigative efforts of our team from the FBI Macomb County Resident Agency, HSI, and our partners at the U.S. Attorney’s Office for the Eastern District of Michigan whose diligence ensured this scheme was uncovered and brought to justice.”
The case was handled by federal prosecutors focused on financial crimes and recovery. The prosecution was led by Assistant United States Attorney Andrew J. Yahkind, while related forfeiture and restitution matters were overseen by Assistant United States Attorney Jessica Nathan.
Homeland Security Investigations highlighted its role in tracking and stopping misuse of federal aid. “Homeland Security Investigations is committed to protecting the integrity of federal relief programs and holding accountable those who exploit them for personal gain,” said Acting Special Agent in Charge Jared Murphey of HSI Detroit. “This sentence demonstrates that individuals who defraud programs intended to help businesses and workers in times of crisis will face serious consequences.”
The investigation included work by the Federal Bureau of Investigation and Homeland Security Investigations, with assistance from the Unemployment Insurance Agency, Michigan Department of Labor and Economic Opportunity. Authorities say cooperation between agencies helped uncover the paperwork trail and recover the bulk of the stolen funds, even as prosecution and restitution efforts continue.
