Alabama Woman Arrested in COVID-19 Payroll Scheme
By Dale Hines
Blue RAM Media/Gulf Coast News
September 1, 2026
MOBILE, AL. A woman accused of defrauding the United States government and trying to steal $2.2 million dollars in a scheme has now been indicted on federal charges.
Ashley LaBounty and others conspired to defraud the Paycheck Protection Program during COVID-19.
An investigation revealed the conspiracy and prosecutors say that they also tried to steal nearly $1.1 million more from PPP loans processed by a different bank.
They accuse her of lying on applications and receiving more than $1.1 million.
She also received another $36,000 from a different COVID-19 relief program, according to the allegations.
How the scheme came to light has not been completely revealed, law enforcement said that others were also involved.
If convicted, the most serious charge carries a maximum penalty of 30 years in prison.
Nationwide, hundreds of similar schemes against the government has been uncovered in recent years.
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