Kara A. DiPietro, 49, was charged by a federal grand jury in Baltimore on Oct. 8 with six counts of bank fraud. The indictment alleges she made false statements or left out information on 16 loan applications for four businesses she controlled. Eight loans, obtained from four banks between May 2020 and March 2021, totaled just under $2.8 million, prosecutors allege. The indictment says some of the money went to expenses not allowed under the program, including renovations to her home.

The charges are allegations, and DiPietro has not been convicted. The city hired her in April 2025 as deputy chief for fleet management in the Department of General Services, at an annual salary of $130,000. Her responsibilities include managing a fleet of more than 5,000 vehicles, overseeing service and parts contracts and supervising fueling stations and a large maintenance facility.

Fleet management is the department’s largest division, with a $96 million budget. The city plans to borrow $39 million this year through its Master Lease Program to replace about 250 vehicles, making oversight of the operation a significant public responsibility.

The mayor’s press secretary declined to comment on the indictment or DiPietro’s job status, saying the mayor’s office would not discuss personnel matters. The Department of General Services and DiPietro did not respond to requests for comment. Berke Attila, who hired DiPietro while serving as the department’s director and is now interim transportation director, said questions were being handled by department leadership and its communications team.

The indictment follows financial disputes involving DiPietro’s former businesses. Three companies she controlled entered bankruptcy in August 2023, and she filed for personal bankruptcy that June. In a recent bankruptcy court filing, lawyers for the State Employees’ Credit Union of Maryland accused DiPietro of changing how she presented her assets and liabilities to obtain a $400,000 loan for one of the companies in 2021. That is an allegation in the civil proceeding, not a finding of criminal guilt.

Five days after the city hired DiPietro, the Maryland comptroller obtained a $15,289 tax-lien judgment against her, according to state court records. Baltimore’s administrative rules require criminal background checks for new employees. The department did not respond to questions about the hiring review.

The federal case concerns loans made under the pandemic-era PPP, which was intended to help businesses cover eligible expenses and retain workers. The allegations raise questions about how the city evaluates applicants for senior positions overseeing public assets and contracts. The city has not publicly explained its decision-making in DiPietro’s hiring or whether the indictment has prompted a review of her role.