Tiawana Brown, 53, and her daughters Tijema Brown, 30, and Antionette Rouse, 33, have been charged with a scheme to defraud the Small Business Administration’s (SBA) Economic Injury Disaster Loan (EIDL) program and its Paycheck Protection Program (PPP) to obtain COVID pandemic relief funds.
The indictment alleges that between April 2020 and September 2021, the defendants conspired to execute the scheme by submitting loan applications containing false information and false documentation. The false documentation included fake and fraudulent tax forms, among other misrepresentations.
The indictment further alleges that the defendants submitted false statements to obtain forgiveness of the PPP loans. In total, the defendants allegedly submitted at least 15 applications for EIDL or PPP funds and falsely obtained at least $124,165 in connection with their scheme to defraud.
The indictment also alleges that the EIDL and PPP funds were deposited into bank accounts controlled by the defendants. Instead of using the pandemic relief funds to pay for qualifying expenses as purported in the loan applications, the defendants allegedly used the proceeds on personal expenses, including approximately $15,000 on a personal birthday party for Tiawana Brown.
If convicted, the defendants face a maximum sentence of 20 years in prison for each offense charged in the indictment. A federal district court judge will determine any sentence imposed after considering the U.S. Sentencing Guidelines and other statutory factors.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney Russ Ferguson commended the FBI in Charlotte for their work on the investigation. Assistant U.S. Attorney Matthew Warren is prosecuting the case.
Related Federal Cases
- Michael Smith, AI-Generated Song Fraud, Manhattan NY, 2023 · North Carolina
- Kenneth Thom, Investment Adviser Fraud, New York NY, 2023 · New York
- Tracey Hernandez, Tax Fraud, Burlington NC, 2021-2022 · North Carolina
- No Defendant Name Found, Bank Fraud Scheme, USA, 2022 · Pennsylvania
- Efraim Steif and Uri Koenig, Medicaid Fraud, Syracuse NY, 2023 · New York
Key Facts
- State: North Carolina
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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