Kara DiPietro
Introduction
Kara DiPietro is a business executive from Towson in Baltimore County, Maryland, who served as president and CEO of several companies, including H.M.C., Inc., Holdings Management Company Inc., and Kinetic Capital LLC. On October 20, 2026, the U.S. Attorney’s Office for the District of Maryland announced a six-count federal indictment charging her with bank fraud in connection with Paycheck Protection Program loan applications that she allegedly filed in the names of multiple businesses. Prosecutors allege the applications sought more than $7.5 million and that more than $2.5 million in PPP funds reached bank accounts under her control. An indictment is not a finding of guilt, and DiPietro is presumed innocent unless and until proven guilty.
Background Information
The Paycheck Protection Program was created under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a federal law enacted in March 2020 to provide emergency financial assistance to Americans suffering from the economic effects of the COVID-19 pandemic. It authorized up to $659 billion in forgivable loans to small businesses for employee retention and certain business expenses, and it was administered by the U.S. Small Business Administration. Loan proceeds were required to be used on payroll costs, mortgage interest, rent, and utilities. DiPietro served as president and CEO of multiple Maryland companies, including H.M.C., Inc., Holdings Management Company Inc., and Kinetic Capital LLC.
The Controversy or Incident That Led to Their Cancellation
Charged, not convicted. Kara DiPietro faces a six-count federal bank fraud indictment announced on October 20, 2026. An indictment is not a finding of guilt, and she is presumed innocent unless and until proven guilty at some later criminal proceedings.
According to the six-count indictment, between April 2020 and May 2021, DiPietro submitted more than 20 fraudulent PPP applications in the names of HMC, Holdings, Kinetic, and similarly named and/or spelled entities.
Prosecutors allege those applications listed false and fraudulent Employer Identification Numbers (EINs) that were not assigned by the IRS to the entities listed on the applications. The applications also allegedly failed to disclose prior PPP loan applications associated with DiPietro, the applying entity, and/or other entities owned, controlled, created, and/or used by DiPietro, as required under PPP rules. The indictment further alleges that she caused the submission of PPP applications that falsely certified that the applicant business had not already received a First Draw PPP loan, and other applications that falsely certified that the applicant business had not already received a Second Draw PPP loan.
The indictment alleges that, during 2020 and 2021, DiPietro caused the submission of PPP loan applications seeking more than $7.5 million. Eight of those applications were funded, and bank accounts under her control subsequently received more than $2.5 million in PPP funds, according to the indictment. Prosecutors allege that DiPietro then caused the transfer of loan proceeds used for expenses that are not permissible under the PPP, including renovations to her personal residence.
These matters are accusations that the government must prove. The release states plainly that an indictment is not a finding of guilt and that an individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings. If convicted, DiPietro would face a maximum sentence of 30 years in federal prison for each of the six counts of bank fraud, although actual sentences for federal crimes are typically less than the maximum penalties, and a federal district judge determines sentencing after considering the U.S. Sentencing Guidelines and other statutory factors.
Public Reaction and Consequences
The indictment was announced by U.S. Attorney Kelly O. Hayes for the District of Maryland together with Special Agent in Charge Jimmy Paul of the FBI’s Baltimore Field Office and Inspector General William W. Kirk of the U.S. Small Business Administration Office of Inspector General. The Justice Department framed the case as part of the Trump Administration’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within federal benefit programs, and it follows the April 7 creation of the department’s National Fraud Enforcement Division, which investigates and prosecutes fraud committed against the American people. Hayes commended the FBI and SBA-OIG investigators and thanked Assistant U.S. Attorneys Joseph Wenner and John Mark Mastakas, who are prosecuting the case, along with paralegal specialist Joanna N. Huber. Because the charges remain pending, no court has made any finding of guilt.
Current Status
As of the October 20, 2026 announcement, DiPietro’s case stands at the indictment stage: she is charged with six counts of bank fraud, and the release reports no arraignment, plea, or trial date. The U.S. Attorney’s Office emphasized that an indictment is not a finding of guilt and that a person charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings. If convicted, she faces a maximum of 30 years in federal prison for each of the six counts. Actual sentences for federal crimes are typically less than the maximum, and sentencing would be determined by a federal district judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
Impact on Their Career/Life
The charges bear directly on DiPietro’s standing as an executive: the indictment identifies her as president and CEO of H.M.C., Inc., Holdings Management Company Inc., and Kinetic Capital LLC — companies in whose names, and those of similarly spelled entities, prosecutors allege the fraudulent applications were filed. Prosecutors allege that more than $2.5 million in PPP funds reached accounts under her control and went to non-permissible expenses, including renovations to her personal residence. With each bank fraud count carrying a maximum of 30 years in federal prison, the pending charges expose her to a potential sentence measured in decades were convictions ever entered. The matter remains unresolved, and the presumption of innocence applies unless and until guilt is proven in court.
Sources
- U.S. Attorney’s Office for the District of Maryland, “Baltimore County Woman Indicted in Federal $2.5 Million Paycheck Protection Program Funds Case,” published October 20, 2026 — source