Three Southern California residents have pleaded guilty to federal charges in a scheme that used bogus pandemic relief loan applications to steal about $3.5 million from the government.
Federal prosecutors identified the defendants as Daryl Knighton Jr., 34, of Perris; Vanessa Williams, 37, of Corona; and Denise Mata, 36, of Moreno Valley. Prosecutors said the scheme ran from March through August 2021 and involved false Paycheck Protection Program, or PPP, applications filed in the names of the defendants, their family members, friends and other recruited participants.
The applications falsely claimed the borrowers were self-employed and would use the funds for business purposes. They were backed by fake tax documents meant to secure approval. Lenders approved the loans for the defendants and more than 100 co-conspirators, and the money was deposited into bank accounts controlled by the defendants and associates. Prosecutors said friends who received the funds paid kickbacks to the defendants within days, and the money was then used for personal expenses rather than business needs.
Williams and Mata pleaded guilty Sept. 22 to federal wire fraud charges, and Knighton followed on Sept. 24. The government said the loss from the fraud totals about $3.5 million. Knighton admitted to at least $145,550 in losses, Williams to at least $187,497 and Mata to at least $201,642. Sentencing is scheduled for Jan. 14, 2027, and each defendant faces up to 20 years in federal prison.
