Woman got $2M in COVID-19 relief loans, then went on shopping spree, AR officials say

A Little Rock woman is facing fraud charges after she lied on a Paycheck Protection Program (PPP) application to get nearly $2 million in loans, thousands of which she spent on personal expenses, Arkansas officials said.

Ganell Tubbs, 41, was arrested on fraud charges this week by the U.S. Attorney’s Office in the Eastern District of Arkansas, according to a news release from the agency. She allegedly submitted a PPP application for two businesses: The Little Piglet Soap Company, LLC and Suga Girl Customs, LLC, the release said.

The Arkansas Secretary of State said neither business was in good standing, and both listed Tubbs’ home address and personal phone number as the business contact information, according to the release. A business is considered to be in good standing in Arkansas if it complies “with all requirements regulated by the Arkansas Secretary of State,” the Secretary of State’s “Doing Business in Arkansas” guide says.

Tubbs claimed to have paid over $1.3 million in wages and compensation for Suga Girl Customs during the first quarter of 2020 on an application submitted in late April, according to the release. Her application was approved, and she received over $1.5 million in loans in early May, according to the release.

Two days after getting the loan, she spent $8,000 on her student loans, the release said. The following week she spent about $6,000 online shopping at Apple, Michael Kors, Sephora, The North Face, Nike and other retailers, according to the release.

The same day she received the funds, she applied for a loan for The Little Piglet Soap Company, the release said. That application was also approved, and Tubbs received $414,375 in loans, according to the release.

The indictment charged Tubbs with two counts of bank fraud, two counts of making a false statement on a loan application, and one count of engaging in a monetary transaction with process of unlawful activity, the release said.

“Numerous businesses across Arkansas are struggling to remain open during this COVID-19 pandemic, so our office has zero tolerance for anyone who fraudulently misuses federal funds intended to help companies weather this tough time,” said Diane Upchurch, FBI Special Agent in Charge. “Alongside our federal and state partners, we will remain vigilant against fraudsters and ensure that PPP funds are used as intended.”

This story was originally published July 16, 2020 at 8:52 PM with the headline "Woman got $2M in COVID-19 relief loans, then went on shopping spree, AR officials say."