A Michigan couple admitted to a scheme that fraudulently took roughly $1.2 million from pandemic relief funds, according to court filings and statements from prosecutors.
A married pair from Michigan pleaded guilty after federal prosecutors say they submitted fake paperwork to collect Paycheck Protection Program loans that they were not entitled to. Court records tie the couple to multiple applications that overstated payroll and income figures for businesses that, according to the filings, did not support those claims. The total loss attributed to the scheme is approximately $1.2 million.
Catherine Spidell-Ferguson entered a guilty plea this week to participating in the PPP fraud conspiracy outlined in the indictment. Her husband, D’Angelo Ferguson, previously pleaded guilty in January to conspiring to commit bank fraud tied to the same set of loan applications. The documents allege both knowingly used falsified supporting materials when submitting their claims.
According to the plea statements, D’Angelo Ferguson admitted he helped submit three separate PPP loan applications that included false representations and fabricated backup documents. The filings say he reported invented monthly income figures and payroll expenses for supposed employees in those applications. Prosecutors say both the employee counts and payroll totals listed were fictitious and unsupported.
Court records furthermore indicate that Catherine Spidell-Ferguson acknowledged her role in submitting at least one of the bogus applications tied to the conspiracy. Taken together, the couple’s actions are accused of producing roughly $1.2 million in fraudulently obtained relief funds. That figure is now part of the federal case against them.
United States Attorney Jerome F. Gorgon Jr. issued a statement condemning the conduct, saying, “Fraud is a plague on our Nation. It takes many forms—and all of them weaken our economy and steal from the American taxpayer. Name a program, and someone is trying to scam it. It is time to make the scammers pay,” said United States Attorney Jerome F. Gorgon Jr. The bulletin frames the prosecutions as part of broader efforts to protect taxpayer dollars.
Sentencing will be scheduled after a pre-sentence report is prepared and submitted to the court, with proceedings to occur before United States District Judge Laurie J. Michelson. Both defendants face statutory maximum penalties that include imprisonment and substantial fines. The plea documents list possible sentences of up to 30 years, fines of up to $1,000,000, and up to five years of supervised release following any prison term.
The Department of Justice has emphasized that fraud against federal benefit programs is a priority, pointing to the creation of a National Fraud Enforcement Division charged with vigorous investigation and prosecution. The DOJ statement also references a government-wide task force aimed at eliminating fraud, waste, and abuse in federal programs. That task force is identified as chaired by Vice President J.D. Vance in the materials accompanying the announcement.
Investigators on the case included agents from the Department of Homeland Security, specifically Homeland Security Investigations. Prosecutors handling the matter are listed as Assistant United States Attorney Jason Dorval Norwood. The announcement of the guilty pleas names Jared Murphey as joining United States Attorney Gorgon in delivering the news, identifying him as Acting Special Agent in Charge of Homeland Security Investigations-Detroit.
The plea filings provide a reminder of how emergency relief programs can attract criminal exploitation when documentation and review are manipulated. Federal authorities say they will continue to pursue cases where applicants allegedly create false payroll numbers, invent employees, or submit phony supporting documents to obtain loans. These prosecutions aim to recover funds and deter similar schemes that drain public resources.
Financial fraud in relief programs typically triggers multiagency probes, and this case follows that pattern, with HSI conducting the investigation and federal prosecutors bringing charges. The filing details and admitted actions will form the basis for sentencing recommendations and restitution calculations. Courts often consider the amount taken, the defendant’s role, and acceptance of responsibility when setting penalties.
Prosecutors contend that the checklist of falsehoods in the applications was significant enough to warrant felony charges and the maximum penalties noted in the plea paperwork. The legal process now moves into the presentence phase, where investigators and probation officers prepare reports to guide Judge Michelson’s sentencing decision. Defendants who have pleaded guilty still face substantial legal exposure under federal statutes cited in the case.
Beyond prison time and fines, the case may carry long-term consequences for the defendants, including supervised release terms and potential orders to repay stolen funds. Federal enforcement officials say recovering misused taxpayer money is a priority alongside criminal accountability. The evolving litigation will proceed through routine court steps as the pre-sentence report is completed and the parties prepare for sentencing hearings.
