Plymouth woman pleads guilty to PPP loan fraud and money laundering

BOSTON — A Plymouth woman pleaded guilty in federal court in Boston to submitting fraudulent Paycheck Protection Program (PPP) loan applications on behalf of herself and her father and laundering the proceeds.

According to the U.S. Attorney’s Office for the District of Massachusetts, on Feb. 12, 2026, Katherine Reynolds, 66, pleaded guilty to two counts of wire fraud and one count of money laundering. U.S. District Court Judge Myong J. Joun scheduled sentencing for June 23, 2026. Reynolds was indicted by a federal grand jury in August 2024.

Federal prosecutors say Reynolds submitted two fraudulent PPP loan applications seeking funds for herself and her then 86-year-old father. The applications falsely claimed the pair earned more than $100,000 per year providing massage services out of their home and included fraudulent tax forms that had not been filed with the Internal Revenue Service.

After receiving the funds, Reynolds withdrew $20,000 in cash from the account into which the PPP proceeds were deposited, according to the U.S. Attorney’s Office for the District of Massachusetts.

The wire fraud charge carries a potential sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. The money laundering charge carries a potential sentence of up to 10 years in prison and a fine of up to $250,000.

United States Attorney Leah B. Foley and Michael J. Krol, special agent in charge of Homeland Security Investigations in New England, announced the charges. The Massachusetts Office of the Inspector General assisted in the investigation. Assistant U.S. Attorney Brian Sullivan of the Major Crimes Unit in the U.S. Attorney’s Office for the District of Massachusetts is prosecuting the case.