Woman accused of fraud to obtain stimulus, PPP funds

Karenda Vaughn
Karenda Vaughn

LONDON, Ky. — An arrest warrant has been issued for a Corbin woman accused of defrauding the government out of money intended to help businesses and individuals recover from the economic effects of the pandemic.

Karenda Vaughn, 35, has been indicted on 10 counts of wire fraud and one count of aggravated identity theft in federal court. She is accused of filing a fake tax return to get another person’s stimulus payment and setting up fake companies in order to apply for PPP loans. She is accused of filing loan applications totaling nearly 90-thousand dollars, although it is not clear how much money she actually received.

In one instance, she is accused of impersonating an attorney in an email to a PPP lender, threatening the company if it did not release her loan funds.

Each of the wire fraud charges carries a potential sentence of 20 years in prison, while the identity theft charge adds a mandatory to two years to any sentence she might receive for wire fraud.