NV Woman Swindled $596K in COVID Loans, Bought a Benz

Las Vegas resident Karen Chapon, also known as Karen Hannafious, has confessed to a brazen scheme to steal over a million dollars in COVID-19 relief funds. The feds say Chapon submitted six bogus loan applications, claiming money for businesses that barely existed and inflating payroll numbers to fleece the Paycheck Protection Program.

The scheme wasn’t just about inflated numbers, though. Chapon actively concealed her criminal history, lying to lenders about prior felony fraud convictions from 2016. She apparently figured a fresh start was in order, despite already having a record. Federal prosecutors weren’t buying it.

The hustle wasn’t subtle. While small businesses genuinely struggled to stay afloat during the pandemic, Chapon managed to secure approximately $596,931 in fraudulent loans. And what did she do with the money? Forget keeping employees on the payroll – she splashed out on a brand new Mercedes-Benz SUV, among other personal expenses. A luxury vehicle purchased with stolen relief funds. The gall.

Chapon pleaded guilty to a single count of bank fraud, but don’t expect a slap on the wrist. She’s facing a maximum sentence of 30 years behind bars, plus hefty fines, restitution for the stolen funds, and a period of supervised release. That Mercedes is going to be a very expensive ride if she ever gets out.

Federal prosecutors are making an example of Chapon, sending a clear message that exploiting pandemic relief programs won’t be tolerated. This case is part of a larger crackdown on COVID-19 fraud, with the feds relentlessly pursuing those who saw the crisis as an opportunity for personal gain.

Sentencing is scheduled for November 29, 2023. Expect the courtroom to be packed. This isn’t just about the money; it’s about the principle. While legitimate businesses were fighting for survival, Chapon was living large off the backs of taxpayers. The feds are determined to hold her accountable.

This case underscores the ongoing work of the COVID-19 Fraud Enforcement Task Force, a multi-agency effort dedicated to identifying and prosecuting those who defrauded pandemic relief programs. The Task Force is a joint operation involving the Department of Justice, the FBI, the Office of Inspector General for the Small Business Administration (SBA-OIG), and other federal agencies.

Anyone with information about COVID-19 fraud is encouraged to report it to the authorities. The feds are actively seeking tips and leads to uncover additional cases of abuse and ensure that those responsible are brought to justice. Don’t think you can get away with it – someone is always watching.