Staff Reports
The Justice Department this week announced a federal indictment charging a Maryland woman with scheming to steal pandemic relief meant for small businesses. The case centers on alleged Paycheck Protection Program (PPP) loan fraud that sought millions of taxpayer dollars — and it comes with an awkward local twist: the accused has been listed as a high‑level Baltimore City employee even after prosecutors went public. Taxpayers deserve better than slow answers and bureaucratic shrugging.
Indictment details and alleged scheme
Federal prosecutors say Kara DiPietro of Towson is the subject of a six‑count indictment alleging bank fraud tied to more than 20 PPP applications that sought over $7.5 million. According to the charging document, eight applications were funded and accounts under her control received more than $2.5 million. The indictment alleges false Employer Identification Numbers, false certifications about prior PPP loans, and failure to disclose other applications — classic red flags for PPP loan fraud. Prosecutors also say some proceeds were used for things the loans were not meant to pay for, including renovations to a personal residence. Those are serious accusations, and they strike at the heart of pandemic‑relief misuse.
Who announced the case and what it means
The U.S. Attorney for the District of Maryland, Kelly O. Hayes, put the indictment on the public record alongside the FBI Baltimore Field Office and the SBA Office of Inspector General. Special Agent in Charge Jimmy Paul and SBA‑OIG Inspector General William W. Kirk were named as partners in the probe. The case is being handled by Assistant U.S. Attorneys Joseph Wenner and John Mark Mastakas and is being folded into the Justice Department’s stepped‑up pandemic fraud enforcement work under the National Fraud Enforcement Division and the White House Task Force to Eliminate Fraud. Each bank‑fraud count carries a statutory maximum of up to 30 years, though any sentence would be set under federal guidelines if there is a conviction.
Baltimore City must answer: why was she still on the payroll?
Here’s the municipal angle that makes this more than another headline: local reporting shows DiPietro was later hired into a senior role at the Baltimore Department of General Services and appeared on the city’s payroll even after the federal case surfaced. City officials initially declined to comment. That response won’t fly. If someone is indicted for allegedly diverting millions in PPP funds, the public has the right to know whether they were placed on leave, relieved of duties, or cleared by human resources. Keeping an indicted employee in a position of authority — especially one tied to fleet or operations — looks like negligence at best, cronyism at worst.
Of course, an indictment is not a conviction and everyone is entitled to due process. Still, taxpayers expect their leaders to act with common sense and urgency. The DOJ and SBA‑OIG deserve credit for pursuing pandemic‑era fraud; now municipal leaders must show they will protect the public purse and restore trust. If the allegations are true, the house renovations and other impermissible uses of PPP dollars are more than an accounting problem — they’re a moral one. Baltimore’s leaders should stop hiding behind silence, get the facts, and then hold people accountable. After all, “forgivable loan” does not mean “forgivable theft.”
