Marion, Iowa – Denisha Clarice Morrison, 28, was sentenced on June 27, 2025, to over a year in federal prison for her role in a brazen scheme that defrauded over $25,000 from FEMA and the Paycheck Protection Program (PPP) during both the August 2020 derecho and the COVID-19 pandemic.
Morrison, a resident of Marion, Iowa, was handed an 18-month sentence by United States District Court Chief Judge C.J. Williams for stealing government funds and wire fraud. She must also pay $27,191.45 in restitution to FEMA and the Small Business Administration (SBA) and serve a three-year term of supervised release following her prison term.
The disaster struck on August 10, 2020, when a severe storm known as a derecho impacted Northern District of Iowa and other Midwestern states, leaving thousands without power and in need of assistance. Morrison falsely claimed she was a victim of the derecho, receiving $7,000 in FEMA benefits while actually living elsewhere and suffering no damage.
In June 2021, Morrison doubled down on her deceit by filing a fraudulent PPP loan application, claiming to own a cleaning business that needed financial aid due to pandemic-related economic effects. She received $20,000 in fraudulent PPP funds as a result of her lies.
While her case was pending, Morrison’s behavior only worsened. She committed theft in Waterloo and violated the terms of her pretrial release by testing positive for illegal substances, failing to find employment, and violating location monitoring requirements during home detention.
Morrison has a lengthy criminal record, with convictions in state court including theft, forgery, weapons possession, and assault. Assistant United States Attorney Timothy L. Vavricek prosecuted the case, which was investigated by the Department of Homeland Security, Office of Inspector General. Morrison is currently being held in U.S. Marshal’s custody pending transfer to federal prison.
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Key Facts
- State: Iowa
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|Public Corruption
- Source: Official Source ↗
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