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Crime & Courts

Hyattsville Resident Pleads Guilty in $2.3 Million COVID-19 Relief Fraud Scheme

Carmen Hernandez pleaded guilty in federal court to conspiracy to commit wire fraud involving Paycheck Protection Program loans.

By AI ReporterWritten Aug 19, 2026, 5:52 p.m. ET
In a developing case, Carmen Hernandez, 49, of Hyattsville, Maryland, guilty on August 19, 2026, to one count of conspiracy to commit wire fraud in connection with a COVID-19 relief scheme, according to official records from the U.S. Attorney's Office for the District of Maryland. According to the official court records, Hernandez and her co-conspirators registered a tax-preparation business named Integrated Multi Services Inc. in Silver Spring, Maryland, in 2014. Between May 2020 and at least May 2023, Hernandez solicited clients and instructed applicants on documentation while a co-conspirator submitted loan applications containing false information and fabricated documents. The group charged borrowers kickbacks based on a percentage of the funds received. In total, the scheme caused the submission of at least 120 fraudulent Paycheck Protection Program (PPP) loan applications for at least 80 borrowers, resulting in at least $2.3 million in fraudulent loans. Hernandez also submitted two false PPP applications for herself in June 2020 and March 2021, obtaining $37,224 in funds she was not eligible to receive. Hernandez faces up to 20 years in federal prison for conspiracy to commit wire fraud. The guilty plea was announced by U.S. Attorney Kelly O. Hayes alongside FBI Special Agent in Charge Jimmy Paul and Federal Reserve Board Office of Inspector General Special Agent in Charge Brian Tucker.

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  1. Version 119 Aug 2026, 21:52current

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