What happened
The U.S. Attorney's Office for the Northern District of Alabama said on 12 November 2026 that Sylvia Lynn Pitts, also known as 'Scylvia L. Pitts', 49, of Decatur, was sentenced to six months in prison after pleading guilty to making false statements to obtain a Paycheck Protection Program (PPP) loan through the SBA. According to the plea agreement, on 10 July 2020 Pitts applied for a PPP loan through a Decatur bank, claiming to be a sole proprietor whose loan would cover payroll and utilities. She submitted a fraudulent 2019 Schedule C showing her business, Pitts Cleaning Services, had gross receipts of $112,100 and net profit of $101,464. The proceeds were deposited on 22 July 2020, and she withdrew $8,800, $6,000 and $6,000 in the following weeks and used the money for personal debts and expenses. Prosecutors said the Schedule Cs she actually filed with her 2019 tax returns did not match the one in the loan application. TVA-OIG and IRS-CI investigated.
How the scam works
A charge, an arraignment, a witness's testimony or a prosecutor's accusation is not a finding of guilt. People and companies named in these reports are accused, charged or, where the source says so, convicted or sentenced, and they are presumed innocent unless and until a court finds otherwise. Do not treat a news report or a press release as a substitute for a court judgment. If you think you were affected by the same kind of scheme, keep records and report them to the investigating agency named in the source, or to your local police and your bank.
Source
Source: https://x.com/NDALnews/status/2120963546234191965 (@NDALnews, Nov 12, 2026, 2:34 PM ET); https://www.justice.gov/usao-ndal/pr/morgan-county-woman-sentenced-six-months-prison (USAO Northern District of Alabama, 12 Nov 2026)
