ST. LOUIS – A Franklin County woman was sentenced Wednesday to two additional years in federal prison for committing pandemic loan fraud after previously pleading guilty in a six-figure embezzlement case.
Prosecutors with the U.S. Attorney’s Office for the Eastern District of Missouri said Christen Schulte pleaded guilty on Aug. 3, 2020 to two counts of wire fraud, two counts of bank fraud, and one count of money laundering. She admitted to embezzling funds from her employer and other individuals associated with her employer. She then sought multiple delays in her sentencing.
On May 27, 2021, a U.S. District Court judge sentenced Schulte to six years and eight months in prison, and ordered her to pay $517,140 in restitution in the embezzlement case. She was to start serving that sentence approximately three months later on Aug. 30.
However, the FBI learned Schulte had fraudulently applied for multiple Paycheck Protection Program loans in the months leading up to her sentencing.
Schulte was indicted in the new case on Nov. 10, 2021.
In September 2022, Schulte pleaded guilty to three additional counts of bank fraud. She admitted that between March 22, 2021, and May 19, 2021, she applied for three loans and received two of them. She admitted lying on the loan applications when asked if she was facing or had been convicted of a felony, and also lied about the gross income for her business, Mama Bear Cake Company.
One application was rejected because of her criminal history. She was approved for two $13,566 loans, the second of which she received on May 19, 2021.
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