Lubbock Woman Sentenced to 30 Months in Federal Prison for Concealing PPP Loan Fraud

Lubbock woman was sentenced Thursday to 30 months in federal prison for concealing PPP Loan Fraud, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

Hope Leticia Hastey, 51, was charged via criminal information in August 2023 and pleaded guilty to one count of misprision of a felony. Ms. Hastey was sentenced Thursday by U.S. District Judge James Wesley Hendrix, who ordered her to pay $3,545,894.36 in restitution.

According to plea documents, Ms. Hastey founded Radar Supports, LLC, a company that provided certain contract services, including speech and occupational therapy and Radar Foundations, Inc., a non-profit that organized community fundraisers to benefit individuals with intellectual limitations.  Radar Supports employed approximately 10 individuals and Radar Foundations did not employ anyone.

In May 2020, an assumed name certificate was filed for “Radar Supports Construction,” indicating Ms. Hastey as the owner. Radar Supports Construction never provided goods or services of any kind and never filed a tax return.

Ms. Hastey employed Andrew Travis Johnson, 59, —an accomplice in a separate case—to provide bookkeeping services for her business. During the Covid-10 pandemic, Mr. Johnson engaged in a bank fraud scheme to obtain loans for Radar Supports, Radar Supports Construction, and Radar Foundations through the Paycheck Protection Program (PPP).  He obtained the loans by falsely inflating payroll data related to Radar Supports and Radar Foundations and fabricating payroll data for Radar Supports Construction.

Ms. Hastey signed the loan documents, which included certifications that the loan proceeds would be used for payroll costs and other business-related expenditures. Hastey failed to notify authorities of the fraud. Instead, to make it appear as though the loan proceeds were used for payroll costs, Hastey wrote a check to a colleague who worked for Radar Supports. The check was not intended for the colleague and was never given to the individual. Ms. Hastey deposited the check into another bank account she controlled.

In total, Ms. Hastey and Mr. Johnson applied for five PPP loans and received nearly $3.5 million. Ms. Hastey spent the money on personal expenses, including heavy equipment to help family members start a new business; a cash purchase of a new home; home renovations; multiple vehicles; vacations; clothing; cosmetic and dental procedures; college tuition; and expenses for a wedding. All five loans were forgiven.  

According to court documents in Mr. Johnson’s case, he pleaded guilty to three counts of bank fraud, one count of identity theft and one count of engaging in monetary transactions in property derived from specified unlawful activity in March 2023. He was sentenced in August 2023 to 180 months in federal prison.

The Federal Bureau of Investigation, Internal Revenue Service - Criminal Investigation Division, and Homeland Security Investigations conducted the investigation.  Assistant U.S. Attorney Ann Howey prosecuted the case. Assistant U.S. Attorney Saurabh Sharad handled the forfeiture.