Kansas City woman pleads guilty to COVID-19 fraud and identity theft

Date: August 28, 2025

Contact: newsroom@ci.irs.gov

Kansas City, MO — A Kansas City, Mo., woman pleaded guilty in federal court today to a scheme to fraudulently obtain Paycheck Protection Plan (PPP) loans, guaranteed by the SBA under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).

Rasheda McDaniel pleaded guilty before U.S. District Judge Greg Kays to one count of wire fraud and one count of aggravated identity theft.

According to court documents, on or about March 22, 2021, McDaniel and co-defendant Briauna Adams used the personal identification information of another person to submit an online application for a COVID-19 relief PPP loan in that individual’s name.

The loan application listed a business with Schedule C gross receipts of $147,412 and a net income of $98,562. The true business tax return listed zero taxable income and did not have a Schedule C.

On or about April 2, 2021, the PPP loan was approved and $20,832 was wire deposited. On the same day, $2,000 was transferred to an account controlled by Adams. An amount of $18,830 was transferred to defendant McDaniel’s account.

On or about Feb. 27, 2021, co-defendant Adams submitted an online application in McDaniel’s name, using personal identification information McDaniel provided to Adams, for a separate COVID-19 relief PPP loan.

The application and supporting documents stated that McDaniel was a sole proprietor of a business established July 7, 2017, that had an average monthly payroll of $8,333. As part of the application, a 2019 Form Schedule C was submitted listing gross receipts of $144,080 and a profit of $99,982. McDaniel did not have a business during that time with gross or net income in those amounts.

On or about March 4, 2021, the defendant’s personal account received a $20,832 wire deposit. The same day, McDaniel made a $15,000 cash withdrawal from the account.

McDaniel’s co-defendant, Briauna Adams, pleaded guilty to multiple fraud charges on May 7, 2025, and is awaiting sentencing.

McDaniel faces up to 22 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentence of the defendant will be determined by the court based upon the advisory sentencing guidelines and other factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.

This case was prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by IRS-Criminal Investigation and the Kansas City, Missouri, Police Department.

IRS Criminal Investigation (IRS-CI) is the law enforcement arm of the IRS, responsible for conducting financial crime investigations, including tax fraud, narcotics trafficking, money laundering, public corruption, healthcare fraud, identity theft and more. IRS-CI special agents are the only federal law enforcement agents with investigative jurisdiction over violations of the Internal Revenue Code, obtaining a 90% federal conviction rate. The agency has 19 field offices located across the U.S. and 14 attaché posts abroad.