A federal fugitive wanted for an alleged role in a $32 million COVID-19 relief fraud scheme was arrested in Montenegro, according to an announcement by the Federal Bureau of Investigation. Sandra Petty, who appeared on the FBI’s Most Wanted Fraudsters list, faces federal charges for allegedly orchestrating widespread misuse of pandemic-era small business loans.
According to the FBI, Petty and her co-conspirators submitted fraudulent applications for Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) funds. The federal relief programs were created under the Coronavirus Aid, Relief, and Economic Security (CARES) Act to help struggling businesses keep workers employed during the pandemic. Investigators state the group used fabricated tax documents and false employee rosters to secure millions of dollars in taxpayer-backed funds.
International Arrest and Extradition Proceedings
Montenegrin authorities took Petty into custody following a coordinated international manhunt involving the FBI’s legal attaché offices, Interpol, and local law enforcement. According to the U.S. Department of Justice, extradition proceedings are currently underway to return Petty to the United States to face trial. The arrest highlights the global reach of federal pandemic fraud investigations, which rely heavily on cross-border cooperation to locate suspects who flee the jurisdiction.
Crackdown on Pandemic Relief Fraud
The case against Petty is part of a broader federal enforcement effort led by the DOJ’s COVID-19 Fraud Enforcement Strike Force. Established to combat widespread abuse of pandemic assistance programs, the strike force combines resources from the FBI, the Internal Revenue Service Criminal Investigation (IRS-CI), and the Small Business Administration Office of Inspector General (SBA-OIG). Billions of dollars in pandemic relief funds have been targeted by criminal syndicates and individual fraudsters, prompting hundreds of federal prosecutions across the country.
Charges and Legal Next Steps
Petty faces multiple counts of wire fraud, bank fraud, and money laundering. According to federal court filings, conviction on these charges carries a statutory maximum sentence of decades in prison. Once extradition from Montenegro is finalized, Petty is scheduled to make an initial appearance in U.S. federal court, where prosecutors will request pretrial detention given her status as a fugitive.
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