New Orleans Woman Swindles $105K in COVID-19 Relief Funds
A 40-year-old New Orleans woman, Tamika Chappell, has been charged with swindling over $105,000 in COVID-19 relief funds intended for small businesses.
U.S. Attorney Duane A. Evans announced that Chappell pleaded guilty on May 23, 2024, before U.S. District Court Judge Carl J. Barbier to three counts, including making false statements related to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), making false statements to the IRS, and theft of government funds.
The CARES Act, a federal law enacted on March 29, 2020, provided emergency financial assistance to combat the economic effects of the COVID-19 pandemic. Congress authorized up to $349 billion in forgivable loans to small businesses through the Paycheck Protection Program (PPP).
Chappell was charged with making false statements to the Small Business Administration (SBA) for the purpose of fraudulently obtaining pandemic-related relief loans, including PPP funds, which she received in the amount of approximately $105,625.00. In addition, she was charged with stealing at least $1,000.00 from the Social Security Administration by receiving disability benefits to which she was not entitled from 2019 to 2022.
Chappell also made false statements to the IRS by failing to report the correct amount of taxable income for the year 2020. Sentencing is scheduled for August 29, 2024. Chappell faces up to five years in prison, up to $250,000 in fines, and up to three years of supervised release for the false statements count.
For the theft of government funds, she faces up to 10 years imprisonment, up to $250,000 in fines, and up to three years supervised release. For the false statement and theft from the IRS, she faces up to three years in prison, up to $250,000 in fines, and up to three years of supervised release. There is also a $100 mandatory special assessment fee per count.
This case was investigated by an agent assigned to the Pandemic Response Accountability Committee (PRAC) Fraud Task Force. The PRAC was established to promote transparency and facilitate coordinated oversight of the federal government’s COVID-19 pandemic response.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The Department of Justice’s response to the pandemic can be found at https://www.justice.gov/coronavirus.
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Key Facts
- State: Louisiana
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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