Tri-Cities woman accused in $21K COVID loan fraud for fake dental business

A Tri-Cities woman is accused of defrauding a federal COVID loan program intended to help small businesses survive the economic hardships caused by the pandemic.

Bonny Sanders received a nearly $21,000 loan through the Coronavirus, Aid, Relief and Economic Security Act, or CARES Act, and then the loan and interest were forgiven, according to a federal court document.

Under terms of the CARES Act Paycheck Protection Program she was required to spend at least 60% of that money on payroll and the rest for payroll, mortgage interest, rent or utilities.

She had applied for the loan in May 2021 as a sole proprietor of a dental services business that she claimed had more than $863,000 in gross income in 2019, according to a court document.

However, she had never had a dental services business, according to Jeremy Kelley, assistant U.S. attorney for the Eastern Washington district, in a court document.

Her loan application document listed her home as the business address, according to a court document.

Fraudulent CARES ACT payments harmed other small businesses because the federal loan program lacked enough money to help all of those that applied, the Eastern Washington U.S. Attorney’s Office has previously said.

Sanders is charged with false, fraudulent or fictitious claims, which is punishable with up to five years in federal prison and a fine of up to $250,000.