Latest news with #EconomicInjuryDisasterLoans
Yahoo
23-05-2025
- Politics
- Yahoo
Charlotte councilmember pleads not guilty to COVID fraud charges, refuses to resign
CHARLOTTE (QUEEN CITY NEWS) — City Councilmember Tiawana Brown is speaking out and standing her ground after pleading not guilty to federal wire fraud charges related to COVID-19 relief funds. Brown, who represents Charlotte's 3rd District, made her first court appearance Friday morning alongside her two daughters, who are also facing charges. Federal prosecutors allege that Tiawana Brown, Tijema Brown, and Antoinette Rouse used fake tax documents to fraudulently obtain nearly $125,000 in Paycheck Protection Program (PPP) and Economic Injury Disaster Loans during the pandemic. One of the allegations claims Brown used part of the loan money to fund a lavish $15,000 birthday party, a loan she says she fully repaid. 'I paid it back…on my own…no one had to tell me to do that,' Brown explained. PREVIOUS: Charlotte council member, daughters indicted for misusing COVID funds, including $15,000 birthday bash Although Brown and her daughters are not being held in custody while they await trial, a federal judge has ordered that their passports be confiscated, meaning they cannot leave the country. Brown, who remained composed throughout the court proceedings on Friday, made it clear she has no intention of stepping down from her role on the city council. 'I am the city councilmember that was elected for the people, by the people,' she said outside the courthouse. 'You don't lose respect for allegations.' Her legal team says they aren't interested in negotiating a plea deal and are reportedly preparing for trial. No date has been set yet, but the trio has requested a jury trial. Brown also confirmed she plans to be at the next city council meeting on Tuesday, continuing her duties despite growing calls for accountability. This isn't Brown's first encounter with the justice system. She previously served four years in federal prison for fraud-related charges over 30 years 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
20-05-2025
- Business
- Yahoo
Atlanta man arrested for $3M pandemic relief fraud scheme
The Brief Ian Patrick Jackson was arrested for orchestrating schemes to fraudulently obtain over $3 million in pandemic relief funds, facing multiple felony charges including bank fraud and money laundering. Jackson allegedly conspired with another individual to recruit business owners to submit fraudulent PPP loan applications, using fake tax documents and false employee claims, and diverted funds for personal expenses. If convicted, Jackson faces significant prison time, with up to 30 years for bank fraud and conspiracy charges, and up to 20 years for wire fraud and money laundering counts. ATLANTA - A 37-year-old Atlanta man was arrested and appeared in federal court on Monday on charges that he orchestrated a series of schemes to fraudulently obtain more than $3 million in pandemic relief funds intended to support struggling businesses during the COVID-19 crisis. The backstory Ian Patrick Jackson was indicted by a federal grand jury on May 6 and now faces seven felony counts, including conspiracy to commit bank fraud, bank fraud, wire fraud, and money laundering. He made his initial appearance before U.S. Magistrate Judge Regina D. Cannon. Federal prosecutors allege Jackson conspired with another Atlanta man to recruit at least nine business owners to submit fraudulent Paycheck Protection Program (PPP) loan applications. The applications allegedly included fake tax documents and falsely claimed each business had 16 employees with monthly payrolls of $120,000. Each business received $300,000 in PPP funds. After receiving the funds, the business owners reportedly wrote "payroll" checks to individuals who did not work for them. The money was then allegedly diverted, with some of it passed to a co-conspirator and ultimately to Jackson. In addition to the conspiracy, Jackson is accused of masterminding three other schemes, including: Using fake tax forms and doctored bank statements to apply for a $237,500 PPP loan; Submitting forged identification and false revenue statements to fraudulently apply for about $100,000 in Economic Injury Disaster Loans (EIDL) and PPP loans; Fraudulently securing $240,035 in PPP funds and $125,000 in EIDL loans and grants. What they're saying Prosecutors say Jackson spent the funds on personal expenses including restaurant meals, spa services, phone and credit card bills, an Aruba vacation, and cash withdrawals. "Ian Jackson took advantage of government programs meant to support American businesses struggling during a national emergency and world-wide pandemic," said Matthew R. Galeotti, head of the Justice Department's Criminal Division. "Today's charges reveal that Jackson was the mastermind behind numerous schemes, utilizing a variety of fraudulent tools and techniques, to lie to the SBA." "Jackson's arrest caps a lengthy investigation that involved multiple defendants and more than $3 million in stolen funds intended to help struggling Americans during a national health crisis," said U.S. Attorney Theodore S. Hertzberg. "These charges demonstrate our office's commitment to collaborate closely with our law enforcement partners to prosecute fraudsters who pilfered CARES Act funds." FBI Atlanta Special Agent in Charge Paul Brown said the agency will continue pursuing individuals who abused pandemic relief programs. "Lying to gain access to economic stimulus funds for personal gain will be met with justice," Brown said. SBA Office of Inspector General Deputy IG Sheldon Shoemaker added, "While hard-working small business owners were looking for lifelines... the defendant and his conspirators were scheming to steal the very funds made available to them through SBA's pandemic response programs." What's next If convicted, Jackson faces a maximum of 30 years in prison for each of the bank fraud and conspiracy charges, and up to 20 years for each of the wire fraud and money laundering counts. Sentencing would follow federal guidelines but is ultimately at the discretion of the court. The Source The U.S. Attorney's Office for the Northern District of Georgia provided the details for this article.
Yahoo
01-05-2025
- Business
- Yahoo
Bookkeeper sentenced for stealing nearly $175K from GA church, charitable program
A woman who was a bookkeeper for a Georgia church has learned her fate as she was convicted of wire fraud. [DOWNLOAD: Free WSB-TV News app for alerts as news breaks] In October 2024, Judith Alane Chavis, 58, of Sorrento, Fla., pleaded guilty to five counts of wire fraud in connection with a disaster benefit and 10 counts of money laundering. According to court documents, from 2018 until August 2022, Chavis was a volunteer bookkeeper for the Glory Church of Alapaha and its charity, the Peanut Butter and Jesus Outreach (PB&J). She was allowed to write checks and the church and charity's bank statements were only sent to her. Officials said between August 2020 and March 2022, Chavis applied and was granted $163,500 of Economic Injury Disaster Loans (EIDL) from the U.S. Small Business Administration on behalf of the Church and PB&J without the Church's or PB&J's permission and using the church's letterhead. Authorities said Chavis also lied about being the treasurer to get money, signing the letter herself. TRENDING STORIES: Ex-GA school bus driver charged after multiple students attack 7-year-old during route, deputies say Atlanta HVAC technician among 19 arrested in 'child predator' operation Have you received a random package you didn't order? It could all be part of a scam to defraud you On March 7, 2022, Chavis submitted a signed certification stating members of the church's finance committee approved the second revision of the loan, but no approval occurred, officials said. The SBA granted the requests and deposited $15,000 in the church's account. The Middle District of Georgia Attorney's Office said Chavis transferred almost all of the EIDL and advance funds from the church's and PB&J's accounts, totaling $173,500, to her checking account. The DA said she used the money for personal expenses, including travel and large purchases. [SIGN UP: WSB-TV Daily Headlines Newsletter] 'Individuals who use places of worship and charitable organizations for their fraud and theft will be rooted out and face consequences for their criminal actions,' said Acting U.S. Attorney C. Shanelle Booker. On Wednesday, a judge sentenced Chavis to serve 21 months in prison and three years of supervised release and $173,500 in restitution. 'Chavis betrayed the confidence the church had placed in her by misappropriating funds intended to support its mission,' said Paul Brown, Special Agent in Charge of FBI Atlanta. 'We hope that this federal prison sentence offers some measure of closure to the church and its congregation and serves as a warning to others who might exploit the trust of faith-based or charitable institutions for personal enrichment.'
CBS News
14-04-2025
- CBS News
Baltimore County man pleads guilty to bribing state employee to secure cleaning contracts
A Randallstown man has pleaded guilty to bribing a state employee to secure nearly $175,000 in COVID-related cleaning contracts, according to the Maryland Attorney General's Office. Mark Anthony Sykes, 51, pleaded guilty to one count of bribery of a public employee in Baltimore County Circuit Court. Prosecutors said Sykes paid approximately $20,000 in bribes to the former Director of General Services for the Maryland Department of Labor in exchange for steering state contracts to his company, Building Enterprises LLC. Between July 2020 and March 2021, Sykes' company received $174,903.25 from the State of Maryland for COVID-related facilities cleaning services through what investigators described as a fraudulent procurement scheme. Sykes' sentencing is set for April 29. On March 10, a 73-year-old Maryland man was charged with lying about his citizenship, misusing social security and committing passport fraud, according to the Maryland U.S. Attorney's Office. Days later, Nichelle Henson, a former Baltimore City Council Candidate was found guilty of COVID-19 relief fraud, after federal prosecutors proved she submitted fraudulent applications for Economic Injury Disaster Loans and Paycheck Protection Program loans for several non-operational businesses. Earlier this month, Baltimore City officials were alerted to the theft of $1.5 million by a fraudulent vendor. A bank alerted the city after an account received two payments, once for $803,000 and another for $721,000. While the money was approved for a vendor, it was directed to an unrelated bank account.
Yahoo
08-04-2025
- Yahoo
DC police officers are being investigated over COVID-19 relief fraud
WASHINGTON - Over two dozen D.C. police officers are under investigation after allegations that they pocketed federal pandemic relief dollars, reports say. What we know The Metropolitan Police Department tells FOX 5 DC that the Internal Affairs Division is investigating "several members related to fraudulent PPP loans." MPD confirmed that no member connected to the investigation has been terminated. The investigation includes a number of issues, including potential violations of law to department policy, reports the Washington Post. An anonymous source told the Post that some of the loans appear to have been fraudulently obtained. Investigations into other issues were in connection with policy infractions, including officers having unapproved secondary employment. Big picture view The Paycheck Protection Program was established in 2020 to help small businesses during COVID-19. According to an analysis by the Associated Press, more than $280 billion in COVID-19 relief funding was fraudulently stolen. Former D.C. police officer Kalynn Fields pleaded guilty last month in connection to receiving $35,000 in Economic Injury Disaster Loans and Paycheck Protection Program loans. Court documents say Fields used two companies to apply for the loans, all while employed by the MPD. Fields was required to report outside businesses to MPD, but failed to do so. Fields pleaded guilty to one count of wire fraud. Sentencing is scheduled for June 20. The Source This story includes information from the Metropolitan Police Department and references an article from The Washington Post and an analysis by the Associated Press.
