A Plymouth resident has admitted to charges of wire fraud and money laundering related to fraudulent Paycheck Protection Program (PPP) loan applications. Katherine Reynolds, 66, pleaded guilty on February 12, 2026, in federal court in Boston. U.S. District Court Judge Myong J. Joun has scheduled her sentencing for June 23, 2026.
According to prosecutors, Reynolds submitted two false PPP loan applications for herself and her father. The applications claimed that both earned over $100,000 annually by providing massage services from their home. Authorities said the documents included fraudulent tax forms that were never filed with the IRS. After receiving the funds from these applications, Reynolds withdrew $20,000 in cash from the account where the loans were deposited.
The charge of wire fraud carries a maximum sentence of 20 years in prison, three years of supervised release, and a fine up to $250,000. Money laundering is punishable by up to 10 years in prison and a fine up to $250,000. Sentencing will be determined according to federal guidelines and statutes.
United States Attorney Leah B. Foley and Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England announced the plea agreement. The Massachusetts Office of the Inspector General assisted with the investigation. Assistant U.S. Attorney Brian Sullivan is prosecuting the case.
“On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud,” officials stated in a release. “The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts.”
Further details about pandemic response efforts are available at https://www.justice.gov/coronavirus as well as https://www.justice.gov/coronavirus/combatingfraud.
Anyone who has information regarding attempted COVID-19-related fraud can report it through the Department of Justice’s National Center for Disaster Fraud Web Complaint Form.