Junction City woman pleads guilty to nearly $500,000 in COVID-19 relief fraud

Eugene, OR. — A Junction City woman has pleaded guilty to wire fraud after prosecutors say she stole nearly $487,400 in federal COVID-19 relief funds intended to support struggling small businesses.

Jodi Aliece Jennings, 50, entered the guilty plea Tuesday in federal court in Eugene, admitting to submitting fraudulent applications for pandemic assistance programs between April 2020 and January 2022.

According to court documents, Jennings obtained six Paycheck Protection Program (PPP) loans and one Economic Injury Disaster Loan (EIDL) advance on behalf of three entities: Meridian Redevelopment, J Jenn Enterprises Inc., and J2 Investments. Prosecutors said Jennings falsely claimed the businesses were operational and paying employees before and during the COVID-19 pandemic.

Authorities allege Jennings also submitted three fraudulent loan-forgiveness applications and used the funds for personal expenses rather than payroll or business costs. In total, the losses to the federal government — including loan principal, interest, the EIDL advance, and SBA-paid lender fees — amounted to no less than $487,386.75.

A federal grand jury in Eugene indicted Jennings on nine counts of wire fraud in June 2023. Under federal law, she faces a maximum sentence of up to 20 years in prison, a $250,000 fine, and three years of supervised release. Sentencing is scheduled for April 22, 2026.

As part of her plea agreement, Jennings has agreed to pay restitution to the Small Business Administration.

The case was investigated by the SBA Office of Inspector General and the U.S. Treasury Inspector General for Tax Administration. The U.S. Attorney’s Office for the District of Oregon is prosecuting the case.

Federal officials continue to encourage the public to report suspected COVID-19 relief fraud. Tips can be submitted to the Justice Department’s National Center for Disaster Fraud Hotline at 866-720-5721 or through its online complaint form.