Federal prosecutors say Kara DiPietro sought more than $7.5 million through over 20 allegedly fraudulent pandemic-relief loan applications.
BALTIMORE, MD — A Towson woman listed in public records as a Baltimore City employee has been indicted on six federal bank fraud counts after prosecutors alleged that accounts under her control received more than $2.5 million through fraudulent Paycheck Protection Program loan applications.
Kara DiPietro, 49, was charged in the U.S. District Court for the District of Maryland in a case involving applications submitted from April 2020 through May 2021. Federal prosecutors said DiPietro caused more than 20 PPP applications to be submitted in the names of several companies and similarly named entities. The applications sought more than $7.5 million, according to the U.S. Attorney’s Office for the District of Maryland. Eight applications were funded.
DiPietro served as president and chief executive officer of several Maryland companies, including H.M.C. Inc., Holdings Management Company Inc. and Kinetic Capital LLC, prosecutors said. The indictment alleges that applications associated with those businesses included false or fraudulent employer identification numbers and omitted information about earlier PPP applications connected to DiPietro or entities she owned, controlled, created or used.
Prosecutors also allege that some applications falsely certified that the applicant had not already received a first-draw or second-draw PPP loan. Bank accounts controlled by DiPietro ultimately received more than $2.5 million from eight funded applications, according to the Justice Department. Authorities allege that some of the money was later transferred and used for expenses not permitted under the program, including renovations to DiPietro’s personal residence.
The Paycheck Protection Program was created under the federal CARES Act during the COVID-19 pandemic to help small businesses maintain payroll and cover certain operating expenses. The forgivable loans were administered by the U.S. Small Business Administration. Eligible expenses included payroll costs, mortgage interest, rent and utilities.
Public records also connect DiPietro to Baltimore City government. A Baltimore Board of Estimates agenda from April identified her as a General Services employee and sought approval for city-funded travel to a fleet-management conference. Her public professional profile has identified her as a deputy chief working in fleet operations for the Baltimore City Department of General Services.
Baltimore Brew reported that DiPietro was hired by the Department of General Services in April 2025 and later became deputy chief of operations for fleet management. The publication reported Oct. 20 that she remained employed by the city. The mayor’s press office declined to disclose her current personnel status, telling the publication that it would not comment on personnel matters. The Department of General Services and DiPietro had not responded to the publication’s requests for comment at the time of its report.
The federal indictment concerns DiPietro’s alleged conduct before her reported employment with Baltimore City. Federal authorities have not alleged in the announced charges that Baltimore City funds, equipment or operations were involved in the PPP applications. The case was investigated by the FBI and the U.S. Small Business Administration’s Office of Inspector General, according to federal prosecutors.
Each of the six bank fraud counts carries a maximum possible sentence of 30 years in federal prison if DiPietro is convicted, although federal sentences are determined by a judge using statutory factors and sentencing guidelines. An indictment is an accusation, not a finding of guilt, and DiPietro is presumed innocent unless proven guilty. Federal prosecutors had not announced a conviction or resolution of the charges as of Wednesday.
Author note: Last updated October 21, 2026.