OFFICE OF INSPECTOR GENERALPress Releases
D.C. Woman Sentenced in PPP Loan Fraud Scheme Uncovered by Fentanyl Trafficking Bust
September 14, 2026
FOR IMMEDIATE RELEASE
U.S. Department of Labor, Office of Inspector General
Defendant Illegally Reaped Nearly $42,000
WASHINGTON – Today, Brittany Blalock, 35, of Washington, D.C., was ordered to pay $41,666 in restitution to Harvest Small Business Finance, LLC and sentenced to 48 months’ probation in connection with a scheme to fraudulently obtain Paycheck Protection Program (PPP) loans during the COVID-19 pandemic, announced U.S. Attorney Jeanine Ferris Pirro. Blalock pleaded guilty on March 4, 2026, before U.S. District Court Judge Colleen Kollar-Kotelly to one count of conspiracy to commit wire fraud.
The prosecution of Brittany Blalock originated from federal law enforcement’s investigation into the wholesale fentanyl trafficking ring led by Alfredo Rodriguez-Gonzalez and his co-conspirators. Through intelligence sharing and financial tracking between the Department of Labor’s Office of Inspector General, the Drug Enforcement Administration, and the United States Postal Inspection Service, investigators uncovered evidence of Blalock’s financial crime.
According to court papers, beginning in March 2021, Blalock conspired to apply for and receive forgivable PPP loans from the Small Business Administration. Blalock submitted false PPP loan applications on her own behalf and helped a co-conspirator submit fraudulent applications.
In March and April 2021, Blalock submitted two PPP loan applications to a small business lender in which she falsely claimed her sole proprietorship earned exactly $100,000 in 2020. Based on the falsified tax form, the lender approved and disbursed two loans of $20,833 each to Blalock.
Blalock then helped her co-conspirator, Karon Blalock, obtain his own SBA-approved bank account credentials and Social Security number in order to submit fraudulent PPP loan applications on his behalf. Using a falsified tax form claiming the same $100,000 in fraudulent sole proprietorship earnings, Karon Blalock received two additional PPP loan disbursements of $20,833 each, which he then used in furtherance of his fentanyl trafficking in the District of Columbia. Karon Blalock has pleaded guilty for his role in a multinational drug trafficking conspiracy that distributed wholesale quantities of fentanyl-laced pills across the United States, and is set to be sentenced by Judge Kollar- Kotelly on October 6, 2026.
In August 2021, Blalock submitted loan forgiveness applications for both of her PPP loans in which she falsely certified that she had complied with all program requirements. She also helped the co-conspirator submit forgiveness applications for his loans using the same false certifications. The lender approved all four forgiveness applications, and the Small Business Administration reimbursed the lender in full.
The case was prosecuted by Assistant U.S. Attorneys Solomon S. Eppel and Matthew W. Kinskey.
This investigation was led by the Department of Labor’s Office of Inspector General with valuable assistance from the Drug Enforcement Administration and the United States Postal Inspection Service.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division. The core mission of the Fraud Division is to zealously investigate and prosecute those who steal or fraudulently misuse taxpayer dollars. Department of Justice efforts to combat fraud support President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President JD Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
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