North Carolina college instructor admits to $150K COVID loan fraud. One false claim could cost her 30 years

A $150,000 pandemic relief loan has landed a North Carolina college instructor in federal court. Pamela Humphrey, 44, has pleaded guilty to conspiracy to commit wire fraud after prosecutors accused her of lying on an application to obtain the money.

According to Where Is The Buzz, Humphrey, who lives in Robeson County, entered her plea before U.S. Magistrate Judge Robert B. Jones Jr. in New Bern. She could face up to 30 years in prison and a $1 million fine. She has also agreed to a $150,000 forfeiture judgment.

Humphrey teaches chemistry in the Physical Science Department at Fayetteville Technical Community College (FTCC). The case involves an application she filed with the U.S. Small Business Administration (SBA) for an Economic Injury Disaster Loan.

The FBI is still carrying out investigations surrounding COVID loan fraud

These loans were intended to give small businesses some breathing room during the pandemic. Businesses could use the money for rent, wages, utilities, and other basic expenses while dealing with shutdowns and falling revenue.

Prosecutors say Humphrey gave the SBA an inaccurate picture of the business she was applying for. Her application included false figures for its gross revenue and the number of people it employed. The agency approved the request and issued a $150,000 payment.

But the money did not end up in a business account. Court records show it was deposited into a personal bank account controlled by Humphrey. The FBI and the IRS Criminal Investigation division investigated the case, which was filed in the U.S. District Court for the Eastern District of North Carolina under case number 7:26-CR-49-FL.

U.S. Attorney W. Ellis Boyle said the guilty plea was another reminder that federal authorities are still pursuing pandemic relief fraud. The emergency programs may be over, but investigations into money obtained through false applications have not stopped.

The sums involved in these cases have been substantial. During the pandemic, the SBA distributed roughly $1.2 trillion through its Economic Injury Disaster Loan and Paycheck Protection Program (PPP).

Humphrey has not yet been sentenced

A 2023 report by the SBA Inspector General estimated that more than $200 billion in relief funds may have been targeted by fraudsters. The EIDL program accounted for an estimated $136 billion of that figure. The SBA’s own internal estimate was much lower, putting confirmed fraud at around $36 billion.

Prosecutors say Pamela Humphrey, 44, of Robeson County, submitted a false application for a Small Business Administration Economic Injury Disaster Loan. https://t.co/IzhV6FKidy

— News 12 (@wcti12) November 3, 2026

Humphrey has not yet been sentenced. She remains free on bond until her sentencing hearing later this year. A federal district court judge will decide her punishment. She was still listed in FTCC’s public faculty directory when she entered her guilty plea.