Sentence Given in $1.5 Million Fraud Case Victimizing an Alabama CU

An owner of a child care center will begin a 33-month federal prison sentence in April for a crime that involved total intended losses of $1.5 million when she applied for a Paycheck Protection Program loan at an Alabama credit union.

In addition to the prison sentence, U.S. District Court Judge R. Austin Huffaker Jr. in Opelika, Ala., ordered Pamela Denise Williams, 53, of LaGrange, Ga., last month to pay a $15,000 fine and to forfeit $121,000.

Federal prosecutors said because Williams’ total intended loss amount from her fraud exceeded $1.5 million, a hearing will be scheduled in the coming months to determine the amount of restitution she owes based on the actual losses of the $21 million Chattahoochee Federal Credit Union in Valley, Ala.

She pleaded guilty to one felony count of bank fraud in October 2023. In exchange for her guilty plea, prosecutors dropped three other felony charges of bank fraud and making false statements to a federally insured financial institution.

In May 2021, Williams applied for a Paycheck Protection Program loan at CFCU. The program provided forgivable loans to small businesses that suffered from the economic effects of the COVID-19 pandemic.

She included false information on the application, which made her eligible to receive a larger loan amount, according to federal prosecutors.

In her plea agreement, Williams admitted that she overstated the income of her business and falsely represented that the loan proceeds would be used for approved purposes, such as payroll, employee retention and other business expenses.

However, she admitted to diverting the funds for unallowed purposes. Federal prosecutors did not say on what or how Williams spent the loan funds.