‘Agriculture’ Business Owner Swiped $150,000 in COVID-Relief Funds, Feds Say

Lori Isabell Morgan, 35, of Greenbelt, Maryland, has been charged with stealing nearly $150,000 in COVID-relief funds meant for struggling small businesses.

According to court documents, Morgan submitted a false application to the Small Business Administration (SBA) for an Economic Injury Disaster Loan (EIDL) in July 2020. She claimed to own 100% of an “agriculture” business based out of her Washington D.C. apartment, employing 10 people and generating $7.5 million in gross revenues in 2019. But there allegedly was no such business.

The SBA deposited $149,900 into Morgan’s bank account in July 2020. She used the money to pay off debts, auto repairs, restaurant tabs, shopping purchases, and trips to Atlantic City and Las Vegas. By December 31, 2020, Morgan’s account balance was down to $829.

The Coronavirus Aid, Relief, and Economic Security (CARES) Act authorized billions in forgivable loans to small businesses through the Paycheck Protection Program (PPP) and EIDL. An EIDL helped businesses meet necessary financial obligations during declared disasters, such as the COVID-19 pandemic.

The investigation into Morgan’s alleged scheme was conducted by the FBI Washington Field Office. Assistant U.S. Attorney Christine Macey is prosecuting the case.

A criminal indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. Morgan made her initial court appearance on June 12 before the Honorable Zia M. Faruqui in U.S. District Court in the District of Columbia.

The charges against Morgan include six counts of wire fraud. If convicted, she faces significant time behind bars and a hefty fine.

Meanwhile, the SBA continues to investigate cases of COVID-relief fund embezzlement, working to ensure that those who genuinely need relief receive it.