By US Attorney, Oregon District
News Release,
PORTLAND, Ore.—A California woman was sentenced to federal prison for stealing nearly $1.3 million in Covid-relief program funds and failing to pay the IRS more than $700,000 in payroll taxes she collected from the employees of a small business in Salem, Oregon.
Jamie McGowen, 43, was sentenced to 37 months in federal prison and five years’ supervised release. She was also ordered to pay $2,072,860 in restitution to the IRS and U.S. Small Business Administration (SBA).
According to court documents, McGowen was the owner or partial owner of nine separate companies including Salem Outsourcing, Inc., a payroll processing company based in Salem. Between August 2016 and December 2019, McGowen provided payroll processing services to a small business also located in Salem. During this time, she failed to pay the IRS $705,613 in payroll taxes she withheld from the paychecks of the company’s employees. Instead, McGowen kept the money for herself and used a portion of the funds to, among other things, purchase a 100% ownership stake in the same company whose payroll taxes she had stolen.
In a separate scheme, between April 2020 and December 2021, McGowen stole more than $1.2 million from federal relief programs intended to help small businesses during the Covid-19 pandemic, including the Paycheck Protection Program, Economic Injury Disaster Loan program, and Restaurant Revitalization Fund. McGowen made numerous false statements in 15 separate loan applications, including by stating she did not own any other company, inflating the number of employees and revenues, and providing false tax documents. McGowen also falsely claimed on loan forgiveness applications that her companies had used the funds received for payroll. In reality, McGowen transferred the money around her businesses, to her father, and to her personal checking account, and paid off personal credit cards.
On October 12, 2022, a federal grand jury in Portland returned a seven-count indictment charging McGowen with wire fraud, bank fraud, and money laundering. On December 11, 2024, she pleaded guilty to one count each of wire fraud and bank fraud, and two counts of money laundering.
This case was investigated by the SBA Office of Inspector General (SBA-OIG) and IRS Criminal Investigation (IRS-CI). It was prosecuted by Meredith Bateman, Assistant U.S. Attorney for the District of Oregon.
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