Chanel Galle, CARES Act Fraud, Louisiana 2023

NEW ORLEANS – A New Orleans woman has been charged with CARES Act fraud, federal authorities announced.

CHANEL GALLE, 44, was indicted on February 10, 2023 by a federal grand jury for two counts of making false statements related to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).

The CARES Act, which became effective on March 27, 2020, established several new temporary programs and provided for the expansion of others to address the COVID-19 pandemic. Among these programs, the Paycheck Protection Program (PPP) authorized forgivable loans backed by the U.S. Small Business Administration (SBA) to small businesses to retain workers and maintain payroll, make mortgage interest payments, lease payments, and utility payments.

According to the charging documents, GALLE made false statements to an approved lender on or about February 18, 2021, for the purpose of fraudulently obtaining a PPP loan. GALLE falsely claimed in her PPP application that she had a certain number of employees and incurred payroll expenses for an LLC called Coco’s Companion Care. GALLE then received approximately $20,833.00 based upon the misrepresentations. GALLE thereafter made false statements to an approved lender on or about March 30, 2021, for the purpose of fraudulently obtaining a second PPP loan. GALLE received approximately $20,832.00 after falsely claiming that she operated a beautician service.

GALLE faces a sentence of up to five years in prison, up to $250,000 in fines, and up to three years of supervised release for each false statements count. There is also a $100 mandatory special assessment fee per count due after conviction.

U.S. Attorney Evans reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.

New Orleans resident Chanel Galle is accused of making false statements to obtain CARES Act loans, which are designed to help small businesses retain workers and maintain payroll during the COVID-19 pandemic.

Contact the National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or visit their website to report any suspicious activity related to the pandemic.

Please note that an indictment is merely a charge and the defendant must be proven guilty beyond a reasonable doubt.

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