Bank Insider Drains $140,000 From US Government Using Illegally Obtained Customer Information

Former Bank Executive Sentenced to Four Years in Prison for Fraudulent PPP and EIDL Loans

A former bank executive has been sentenced to four years in federal prison for draining over $140,000 from two US government programs through fraudulent loans. Kaylee Ree Lunn, 37, of Holliday, Texas, pleaded guilty to wire fraud for orchestrating a scheme that siphoned government funds via bogus Paycheck Protection Plan (PPP) loans.

Lunn, who served as vice president at the Wichita Falls branch of Prosperity Bank, misused her position to access customers’ personal and business financial information without their consent. Court documents reveal that she used this illegally obtained data to apply for four PPP loans and a commercial loan between 2020 and 2021, falsely claiming that the businesses belonged to her husband.

To bolster her chances of loan approval, Lunn admitted to inflating the firms’ income and payroll expenses. She diverted more than $276,000 in loan proceeds to accounts under her control, ultimately receiving over $140,000 in fraudulent PPP loans.

In addition to the prison sentence, Chief United States District Judge Reed C. O’Connor has ordered Lunn to pay restitution of $573,444 to the Small Business Administration and over $19,000 to Prosperity Bank, formerly known as First Capital Bank.

Prosperity Bank, based in Texas, ranks as the 55th-largest bank in the US with assets totaling over $38.38 billion, according to the Federal Reserve.

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