Laurel County woman accused of COVID-19 relief fraud

LONDON, Ky. (WYMT) - A Laurel County woman is facing federal charges after prosecutors say she schemed to commit COVID-19 relief fraud and identity theft.

A federal grand jury in London charged Karenda Vaughn, 35, from Corbin with fraudulently obtaining funds from Paycheck Protection Program loans and Economic Injury Disaster Loans, which are guaranteed by the Small Business Administration under the Coronavirus Aid, Relief and Economic Security Act.

The indictment alleges beginning on April 30, 2020 and through March 23, 2021, Vaughn created a fake business entity, Vaughn Outdoor, and submitted numerous fraudulent applications for Economic Injury Disaster Loans proceeds, making numerus false statements about the business.

Vaughn is also accused of using a stolen identity and personal identifying information to create another fake business entity, Josh’s Nature Cure. The indictment alleges she then tried to obtain fraudulent loans proceeds.

She could face up to 22 years in prison and up to a $250,000 fine.