Denver – In a stunning turn of events, Shambrica Washington, 39, a resident of Parker, Texas, and once a Colorado business owner, has been found guilty by a jury on 31 counts of defrauding COVID-19 relief programs to the tune of nearly half a million dollars. Washington was accused of wire fraud, bank fraud, money laundering, and false claims offenses.
According to trial evidence, Washington secured loans totaling $485,749.00 from the Small Business Administration for two Economic Injury Disaster Loans and from JPMorgan Chase for two PPP loans between March 2020 and July 2020. She operated under two business names, including Tiny Toes and Tiaras, an online luxury baby boutique. Washington misrepresented her businesses’ employment figures, wages, revenues, and operational costs to obtain the fraudulent loans.
She used the funds for personal expenses such as a car purchase, custom-built home, elective surgery, and paying credit card debt and other bills. Her greed didn’t stop there; she also applied for millions in additional loans, grants, and tax credits, including advance tax credits from the IRS and a $6 million grant meant for shuttered concert venues.
Acting United States Attorney for the District of Colorado Matthew Kirsch commented, “The defendant fraudulently took money from American taxpayers for her own personal benefit. Our office and the Department of Justice will continue to seek out and prosecute individuals who took advantage of programs meant to help those in need during the COVID-19 pandemic.”
Special Agent in Charge Mark Michalek echoed Kirsch’s sentiments, emphasizing that “CARES Act funds were meant to provide direct economic assistance to American workers and businesses impacted by the pandemic. This defendant fraudulently obtained hundreds of thousands of dollars under this program for personal luxuries.”
The investigation was conducted by IRS Criminal Investigation and the FBI Denver Field Office, with Assistant United States Attorneys Craig Fansler and Taylor Glogiewicz handling the prosecution. U.S. District Court Judge William J. Martinez presided over the trial.
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Key Facts
- State: Colorado
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|Public Corruption
- Source: Official Source ↗
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