A Washington D.C. resident has admitted to defrauding the federal government of pandemic relief funds by misusing a large disaster loan meant to support struggling businesses. Jennifer May, 43, pleaded guilty to one count of wire fraud after investigators found that she fraudulently obtained $1,500,000 in Economic Injury Disaster Loans, funds that were provided during the COVID-19 pandemic to help small businesses meet critical expenses. Her guilty plea has set the stage for sentencing later this year, with the court ordering her to repay the full amount of the loan.
May was the founder and owner of Next Level Partners LLC, a consulting business that focused on providing compliance and financial management services to political campaigns. While her firm appeared to be legitimate on paper, the investigation revealed that she had used false statements in her disaster loan applications to obtain a substantial payout. Officials confirmed that she had originally filed for relief under the federal program, then later submitted a modified application in October 2021 seeking $1,500,000 in funding. This request was processed under the rules of the U.S. Small Business Administration’s pandemic loan program, which was specifically designed to provide low-interest, long-term loans for businesses in need.
According to the terms of the SBA’s program, the money was supposed to be allocated to business needs such as payroll, rent or mortgage obligations, utility bills and the repayment of business debt. Instead, prosecutors said May diverted the money for unauthorized uses, including speculative investments in cryptocurrency and other personal expenses. This deliberate misuse of the funds not only violated the program requirements but also contributed to the growing number of fraud cases tied to emergency relief loans.
The government launched its investigation after identifying irregularities in May’s filings and financial activities. Federal prosecutors alleged that she intentionally falsified details in her application, making it appear as though the loan would go toward maintaining her business operations. However, financial records showed that she did not use the funds for their intended purpose, which strengthened the case against her. May ultimately chose to plead guilty, acknowledging her role in the fraudulent scheme and agreeing to return the full amount of $1,500,000.
Her sentencing has been scheduled for December 9, where she could face significant penalties including prison time, restitution and additional fines. The exact sentence will depend on federal guidelines and the court’s decision, but the guilty plea ensures that she will carry a felony conviction. Legal experts note that cases like this have become increasingly common as federal investigators continue to crack down on pandemic relief fraud. Over the last three years, numerous individuals across the country have been charged for misusing loans and grants that were supposed to stabilize small businesses during the economic downturn.
The case against Jennifer May underscores the risks of abusing financial relief programs. While the government created the SBA loan program to help keep small businesses afloat during a time of crisis, the misuse of those funds has drawn intense scrutiny from prosecutors. Officials say that misappropriating disaster funds not only hurts taxpayers but also undermines the credibility of programs designed to help genuine businesses in need.
In addition to being ordered to repay the $1,500,000, May now faces a long-term impact on her career and reputation. As the founder of a consulting firm that specialized in campaign compliance, her conviction will make it difficult for her to continue working in the same field. The plea deal demonstrates that federal authorities are serious about holding individuals accountable for abusing pandemic assistance programs, and it serves as a warning to others considering fraudulent claims.
The sentencing will bring closure to a case that highlights both the opportunities and the vulnerabilities that arose during the pandemic relief efforts. While thousands of businesses legitimately relied on federal loans to survive, the program also saw a wave of fraudulent activity. Jennifer May’s case is another reminder that misuse of public funds can result in severe consequences, and that the justice system is actively pursuing those who took advantage of emergency aid.
