U.S. Attorney’s Office for Western District of Pennsylvania joins DOJ Fraud Division, SBA, and SBA OIG in surge takedown exceeding $245 million in COVID-era loan fraud

Date: Sept. 14, 2026

Contact: newsroom@ci.irs.gov

Pittsburgh, PA – The U.S. Attorney’s Office for the Western District of Pennsylvania today announced the conviction of two defendants as part of a nationwide enforcement action led by the Justice Department’s National Fraud Enforcement Division, the Small Business Administration (SBA), and the SBA Office of Inspector General targeting fraud in the SBA’s Paycheck Protection Program (PPP).

From June 12 to Sept. 1, federal prosecutors across the country facilitated fraud enforcement actions spanning over 160 criminal defendants, including approximately 80 newly charged defendants, reaching approximately $245 million dollars in intended loss to American taxpayers.

“Small Business Administration-related fraud harms not only U.S. taxpayers, but the many small businesses and owners who play by the rules and are legitimately entitled to these funds,” said United States Attorney Troy Rivetti. “As demonstrated by this nationwide enforcement surge, this type of fraudulent activity was prevalent and is still being uncovered and prosecuted years after the COVID-19 pandemic. Our office is committed to working with our law enforcement partners to ensure that this extremely serious criminal conduct continues to be prosecuted to the fullest extent in our district.”

“Pandemic loan relief was meant to keep American small businesses alive during government lockdowns—not line the pockets of fraudsters,” said Attorney General Todd Blanche. “The defendants charged during our summer surge allegedly fabricated businesses, submitted false payroll and revenue claims, stole identities, and concealed foreign ties on their applications—but they will now be prosecuted to the fullest extent of the law.”

In the Western District of Pennsylvania, United States Attorney Rivetti announced that two defendants have been convicted—one by jury trial—for PPP-related fraud during the takedown period, involving a total of nearly $1 million in alleged losses.

On July 8, 2026, April Jones-Munnerlyn of Pittsburgh, Pennsylvania, pleaded guilty in federal court to one count of conspiracy to defraud the government with respect to claims. In connection with the guilty plea, the Court was advised that, with the help of a co-conspirator, Jones-Munnerlyn caused the filing of false employment tax returns for her business and a business owned by her husband. The returns falsely reported that the businesses paid wages to employees when they did not, and that the businesses were accordingly entitled to the employee retention credit, even though they were not. As a result, the defendant received more than $400,000 in fraudulently obtained refunds.

Jones-Munnerlyn also caused the submission of a false and fraudulent PPP loan application on behalf of her business, in response to which she received $20,833 to which she was not actually entitled. The defendant faces a sentence of up to 10 years of imprisonment, a fine, or both, and agreed-upon restitution to the Internal Revenue Service (IRS) of $411,731.18 and to the SBA of $20,833. The IRS Criminal Investigation conducted the investigation that led to the prosecution of Jones-Munnerlyn.

On Aug. 28, 2026, Jason Youngdahl of Brockway, Pennsylvania, was convicted on all charges—two counts of wire fraud, two counts of money laundering, and one count of theft of government money—by a federal jury in the Western District of Pennsylvania pertaining to his pandemic fraud. The evidence presented during the two-day trial established that Youngdahl fraudulently obtained more than $540,000 from the United States SBA in Economic Injury Disaster Loans (EIDL), which were funds intended to provide small businesses with relief from the COVID-19 pandemic. Youngdahl fraudulently obtained loan funds on five different occasions, each time representing that he would use the money for the small business he operated when, in fact, he planned to and did use the funds for personal purchases, including a personal vehicle and residence. The defendant faces a sentence of up to 20 years in prison, a fine of up to $250,000, or both. The Federal Bureau of Investigation and United States Postal Inspection Service conducted the investigation that led to the prosecution of Youngdahl.

“This summer surge shows what is possible when dedicated public servants across the country work together with a single purpose,” said Assistant Attorney General Colin M. McDonald of the National Fraud Enforcement Division. “Our mission is clear: protect taxpayer funds, safeguard the integrity of federal relief programs, and deliver justice to those who exploited them. We will remain steadfast every day—standing shoulder-to-shoulder with our partners—to identify fraud, pursue those responsible, and restore confidence in the programs meant to help American small businesses thrive.”

“Today’s announcement represents the largest-ever action against perpetrators of SBA fraud, with 870,000 suspended borrowers tied to $39 billion in suspected fraudulent PPP and COVID EIDL activity. In partnership with Vice President Vance and the White House Task Force to Eliminate Fraud, we’re putting fraudsters on notice: the federal government will no longer turn a blind eye to those who stole from taxpayers and exploited programs designed to sustain small businesses during the pandemic,” said SBA Administrator Kelly Loeffler. “With demand letters going out to suspected fraudsters, we’re also sending a clear message that they must repay their debts or face Treasury collections and possible federal law enforcement. Under this Administration, the free ride is over. We are restoring accountability, recovering taxpayer dollars, and protecting SBA programs for the legitimate small businesses they were created to serve.”

“Operation No Doze brings a focused and coordinated approach to pursuing fraud in SBA’s pandemic relief programs,” said SBA Inspector General William Kirk. “By concentrating our investigative resources and working closely with SBA and our law enforcement partners, we are strengthening our ability to identify fraud, recover taxpayer funds, and hold accountable those who exploited programs created to help small businesses in a time of extraordinary need. This initiative makes clear that the passage of time does not diminish our commitment to accountability.”

On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (Fraud Division). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.

IRS-CI is the law enforcement arm of the IRS, responsible for conducting financial crime investigations, including tax fraud, narcotics trafficking, money laundering, public corruption, healthcare fraud, identity theft and more. It is the only federal law enforcement agency with investigative jurisdiction over violations of the Internal Revenue Code. IRS-CI has 16 field offices located across the U.S. and maintains an international presence through attaché posts abroad.