Jasmine Johnnae Clifton, COVID-19 Loan Fraud, North Carolina 2021

A Charlotte woman who allegedly exploited the coronavirus pandemic to obtain a fraudulent loan has appeared in federal court. Jasmine Johnnae Clifton, 24, of Charlotte, was indicted by a federal grand jury on February 17, 2021, on charges of wire fraud in relation to a disaster benefit, and fraud in connection with major disaster or emergency benefits.

The indictment alleges that Clifton created Jazzy Jas LLC, an online retail clothing sales business, in April 2019. However, the company had been dissolved by Clifton several months prior to submitting a fraudulent loan application to the U.S. Small Business Administration (SBA) for Jazzy Jas on July 24, 2020. As a result, Clifton obtained $149,900 in disaster relief funds that were intended to be provided to an existing business harmed by the COVID-19 pandemic.

The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to millions of Americans suffering the economic effects caused by the COVID-19 pandemic. The CARES Act established several new temporary programs and provided for the expansion of others, including the Economic Injury Disaster Loan (EIDL) program, which provides low-interest financing to small businesses, renters, and homeowners in regions affected by declared disasters.

Clifton allegedly used the government funds to make purchases at numerous retail stores, including at Nordstrom, Ikea, Neiman Marcus, Rooms To Go, Louis Vuitton, Best Buy, and other retail shopping outlets. Clifton also made purchases at multiple diamond stores.

Clifton was released on bond following today’s court appearance. The charge of wire fraud in relation to disaster benefit carries a maximum prison term of 30 years and a $1,000,000 fine. The maximum penalty for fraud in connection with major disaster or emergency benefits is 30 years in prison and a $250,000 fine.

The charges in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond reasonable doubt in a court of law.

U.S. Attorney Andrew Murray thanked IRS-CI and USPIS for their investigation, which led to the charges. Assistant U.S. Attorney William Bozin is prosecuting the case.

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