Former Tacoma bakery owner sentenced in federal wire-fraud case. Here’s what we know
A former owner and CEO of Tacoma Baking Co. was sentenced in U.S. District Court in Tacoma for using fraudulent information to obtain nearly $350,000 in Paycheck Protection Program loans.
Jessica Heinlein, also known as Jessica DeVisser, pleaded guilty to the wire-fraud charge in November. She was sentenced to five years of probation on Monday, with six months of home confinement. Prosecutors recommended a sentence at the low end because of her plea agreement, according to the U.S. Department of Justice.
Heinlein used false information to obtain three PPP loans, with the largest amount being $309,972, on behalf of the Tacoma Baking Co. in April 2020. The money not used exclusively for payroll as required, and much of it was used for Heinlein’s personal expenses, according to a DOJ news release.
The bakery opened in January 2020 and lasted for 10 weeks as employees alleged mismanagement and pay discrepancies, including bounced checks, tip withholding and being compensated in cash, a previous News Tribune story reported.
The company ceased daily operations on March 9, days before the COVID-19 pandemic led to business and school closures. In July, reports from the U.S. Treasury Department showed that the bakery had received several hundred thousand dollars in PPP funds.
When Heinlein made the first loan application on behalf of Tacoma Baking Co. in April 2020, she claimed that two of the company’s eight owners were “sole owners” of the bakery, according to DOJ. She created email accounts in the two people’s names so she could correspond with financial institutions.
Heinlein forged their signatures and provided copies of their driver’s licenses without their knowledge. The loans were deposited in her personal account, and she used some of the money for personal expenses, the release said.
In January 2021, she applied for a loan under “Jessica DeVisser Consulting,” saying she was an independent contractor with a monthly payroll of $7,189. That information was false, according to DOJ, which contended she was not an independent contractor and had no payroll obligation. Heinlein submitted altered financial records to support the application.
The $17,900 loan was approved, but before Heinlein could access the money, her bank froze the funds and returned them to the lender.
Heinlein applied again in April 2021 under “Jessica DeVisser Consulting,” claiming monthly payroll of $20,833. She received the full $20,833 even though the information was false. The funds were used for improper purposes, the release said.
Heinlein agreed to pay restitution to the SBA for $360,881 in her plea agreement, which is the total loan amount plus fees and interest paid by the administration, the release said.
Tacoma Baking Co. was appointed a court receivership in late 2020 and had been fully liquidated by Feb. 19, 2021, The News Tribune reported. According to the receiver that handled the case, with more than 50 claimants, the company carried more than $3.5 million in unsecured debt, $214,000 in secured debt, $207,000 in taxes and $102,000 of unpaid wages.
This story was originally published February 13, 2024 at 5:15 AM.
