Federal Indictment Charges North Texas Woman With $680,000 Relief Loan Fraud

Federal prosecutors filed a 10-count indictment on Monday against April Watson, a 50-year-old North Texas resident who allegedly secured over $680,000 in pandemic relief loans through false business documentation. Watson made her initial court appearance on October 23 in the Northern District of Texas.

The indictment charges Watson with four counts of wire fraud, two counts of bank fraud, and four counts of money laundering. Prosecutors allege the scheme operated from April 2020 through October 2021. The charges involve loans obtained from the Paycheck Protection Program and Economic Injury Disaster Loan programs.

Watson allegedly submitted applications on behalf of three entities: Exotic Bliss Beauty LLC, Brain Evolution LLC, and Southern Home Ventures LLC. The documents included fabricated payroll summaries and false IRS forms. The indictment states that a purported payroll provider had not prepared the W-2 and W-3 forms for Exotic Bliss and Southern Home Ventures. Additionally, those businesses had not filed wage-related tax returns for 2019 or 2020.

The alleged illicit funds total $680,492. This sum includes $210,698 in PPP funds from Kabbage, $299,800 in disaster loans from the Small Business Administration, and $169,994 in PPP funds from JPMorgan Chase. Prosecutors allege that three transfers totaling $114,850 went toward the construction of Watson's personal residence in Cedar Hill. A separate transfer of $40,000 went to an associate.

U.S. Attorney Ryan Raybould stated that his office and law enforcement partners remain committed to identifying pandemic-era fraud and holding responsible parties accountable. Watson also uses the names April Watson Horton and April Shawnette Watson. She is presumed innocent until proven guilty in court.

If convicted, Watson faces maximum prison terms of 20 years for each wire fraud count, 30 years for each bank fraud count, and 10 years for each money laundering count. Prosecutors are seeking the forfeiture of the Cedar Hill residence and a money judgment for the proceeds tied to the offenses. Assistant U.S. Attorney Elise Aldendifer is prosecuting the case.

The investigation was conducted by IRS Criminal Investigation and Homeland Security Investigations through the Dallas El Dorado Task Force. The case highlights the ongoing federal effort to recover funds from businesses that misapplied for emergency relief during the pandemic.