Former D.C. Official Sentenced for Fraudulently Obtaining $844,000 in Pandemic Relief Funds
A former D.C. Homeland Security Commissioner and current U.S. Department of Agriculture employee has been sentenced to 15 months in federal prison for fraudulently obtaining funds from the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program.
Wendy Nicole Villatoro, 40, formerly of Washington, D.C., was sentenced on February 28, 2025, in U.S. District Court after pleading guilty to bank fraud in connection with the scheme. In addition to her prison term, Villatoro will serve two years of supervised release and has been ordered to pay $844,415.24 in restitution.
According to court documents, between March 2020 and August 2021, Villatoro submitted multiple fraudulent loan applications to financial institutions and the Small Business Administration (SBA). Prosecutors say she attempted to obtain between $2.6 million and $5.5 million through falsified information about non-existent businesses, inflated payroll numbers, and exaggerated revenue figures. While most of her applications were denied, she successfully secured more than $844,000 in pandemic relief funds.
Investigators determined that Villatoro used the fraudulently obtained money to pay off student loans, settle a car loan for a BMW SUV, and purchase luxury items, including more than 70 pieces of designer clothing and jewelry. As part of her plea agreement, she agreed to forfeit these assets.
The Paycheck Protection Program, established under the CARES Act in March 2020, was designed to assist small businesses affected by the COVID-19 pandemic. The program provided forgivable loans for payroll and operating expenses. The EIDL program similarly offered financial relief to businesses facing revenue losses.
The case was investigated by the U.S. Attorney’s Office for the District of Columbia, the U.S. Department of Agriculture’s Office of Inspector General (USDA-OIG), and the SBA’s Office of Inspector General (SBA-OIG). The FBI Washington Field Office also contributed to the investigation.
The prosecution was led by Assistant U.S. Attorneys Jared English and Rick Blaylock, Jr., with support from former Assistant U.S. Attorneys Connor Mullin, Anna Forgie, and Paul V. Courtney.
Authorities encourage anyone with information regarding pandemic-related fraud to report it to the Department of Justice’s National Center for Disaster Fraud at 866-720-5721 or through the online complaint form at justice.gov/disaster-fraud.