RIVERSIDE, Calif. — A Perris man pleaded guilty to wire fraud in a scheme that used false applications to obtain COVID-19 business relief loans. Federal prosecutors estimate the scheme caused about $3.5 million in losses.
Daryl D. Knighten Jr., 34, admitted helping people obtain Paycheck Protection Program loans in exchange for a share of the money.
His plea was the third in the case this week. Vanessa M. Williams, 37, of Corona, and Denise Mata, 36, of Moreno Valley, pleaded guilty Tuesday to one count of wire fraud each.
According to their plea agreements, the three submitted fraudulent loan applications for themselves, relatives, associates and people they recruited from March to August 2021. The applications falsely claimed the borrowers were self-employed, included fraudulent tax forms and said the money would be used for approved business expenses.
Lenders approved loans for the defendants and more than 100 others involved in the scheme, prosecutors said. Some recipients paid kickbacks to the defendants within days of receiving the money. The defendants and others spent the funds on personal expenses and submitted false documents seeking loan forgiveness.
Knighten admitted responsibility for at least $145,550 in losses. Williams admitted at least $187,497, and Mata admitted at least $201,642. Prosecutors estimate losses from the broader scheme at approximately $3.5 million.
U.S. District Judge Kenly Kiya Kato scheduled sentencing for all three on Jan. 14, 2027. Each faces up to 20 years in federal prison.
A fourth defendant, Mikhail G. Hoalim, 35, of Moreno Valley, has pleaded not guilty to nine wire fraud counts. His trial is scheduled for Nov. 9. The charges against him remain allegations.
Quick facts checklist
- ☑ Three guilty pleas: Knighten, Williams and Mata each pleaded guilty to one wire fraud count.
- ☑ Estimated scheme loss: About $3.5 million, according to federal prosecutors.
- ☑ How it worked: False self-employment claims and tax forms were used to obtain PPP loans; some recipients paid kickbacks.
- ☑ Loan recipients: The government says lenders approved loans for the defendants and more than 100 others involved.
- ☑ Sentencing: Jan. 14, 2027, for the three defendants who pleaded guilty.
- ☑ Fourth defendant: Hoalim has pleaded not guilty and is scheduled for trial Nov. 9.