Halee Mehlbauer sentenced to 15 months for faking businesses to steal $177K in PPP loans for personal gambling.

Halee Ann Mehlbauer of Tooele, Utah, was sentenced to 15 months in prison and ordered to repay $177,030 in restitution for fraudulently obtaining over $177,000 in PPP loans using fake businesses and false documents. She used the funds for personal expenses, including gambling. Her co-defendant, Timothy Lopez, received time served and probation, with a joint restitution order. Charges against a third individual were dropped after it was determined his identity was misused. The case, part of a broader federal effort to combat pandemic relief fraud, underscores the consequences of misusing taxpayer-funded small business assistance.