CHICAGO, IL – A pair of suburban Chicago residents are facing serious federal charges after allegedly pilfering over $742,000 in COVID-19 relief funds. Te Dora Brown, 43, of Palos Park, and Christopher Scott, 43, of Hazel Crest, are accused of a brazen scheme to exploit the Small Business Administration’s (SBA) Economic Injury Disaster Loan (EIDL) program and the Paycheck Protection Program (PPP), designed to help legitimate businesses survive the pandemic.
Federal prosecutors unsealed an indictment on Wednesday detailing a plot that stretched from March 2020 to March 2021. The indictment alleges Brown and Scott submitted a slew of fraudulent applications for loans on behalf of businesses that existed only on paper. These applications were riddled with lies, inflating employee numbers, revenue, payroll, and even the very existence of operational companies, according to court documents.
The scheme reportedly hinged on creating fictitious entities with no actual employees or payroll. The pair allegedly intended to pocket the funds for personal use, treating the government assistance as a personal slush fund during a time of national crisis. Brown is charged with 13 counts of wire fraud, while Scott faces 9 counts, each carrying a potential sentence of up to 20 years in federal prison. This isn’t just about money; it’s about exploiting a system meant to keep families and communities afloat.
Both Brown and Scott were arraigned before Magistrate Judge Jeffrey Cole on March 1, 2023. The U.S. Attorney’s Office for the Northern District of Illinois, led by John R. Lausch, Jr., is prosecuting the case, with substantial assistance from the Secret Service’s Chicago Field Office, headed by Special Agent-in-Charge Douglas Zloto, and the SBA-Office of Inspector General. Assistant U.S. Attorney Alejandro G. Ortega is handling the prosecution.
It’s crucial to remember that an indictment is merely an accusation, and both defendants are presumed innocent until proven guilty beyond a reasonable doubt. However, the evidence presented thus far paints a disturbing picture of calculated fraud. If convicted, the court will determine a reasonable sentence based on federal statutes and sentencing guidelines.
The Department of Justice is actively pursuing those who attempted to profit from the pandemic. Anyone with information regarding COVID-19 related fraud is urged to report it to the National Center for Disaster Fraud Hotline at 866-720-5721 or file an online complaint at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form. The feds are watching, and those who preyed on this crisis will be held accountable.
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Key Facts
- Agency: U.S. Secret Service
- Category: Fraud & Financial Crimes
- Source: Official Press Release
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