(Crankers) The following is a press release from the Department of Justice (DOJ):
CHARLOTTE, N.C. – A federal grand jury in Charlotte has returned a criminal indictment charging Tiawana Brown, 53, and her daughters, Tijema Brown, 30, and Antionette Rouse, 33, all of Charlotte, with wire fraud conspiracy and wire fraud in connection with fraudulent applications filed to falsely obtain COVID pandemic relief funds, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina.
James C. Barnacle, Jr., Acting Special Agent in Charge of the FBI in North Carolina, joins U.S. Attorney Ferguson in making today’s announcement.
According to allegations in the indictment, between April 2020 and September 2021, the defendants conspired to execute a scheme to defraud the Small Business Administration’s (SBA) Economic Injury Disaster Loan (EIDL) program and its Paycheck Protection Program (PPP) and obtain COVID pandemic relief funds for their purported businesses, through the submission of loan applications that contained false information or false documentation. It is alleged that the false documentation generally included fake and fraudulent tax forms, among other misrepresentations. It is further alleged 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 allegedly approximately $15,000 on a personal birthday party for Tiawana Brown.
The defendants are charged with wire fraud conspiracy and wire fraud. If convicted, they face 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.
In making today’s announcement, U.S. Attorney Ferguson commended the FBI in Charlotte for their work on the investigation.
Assistant U.S. Attorney Matthew Warren with the U.S. Attorney’s Office in Charlotte is prosecuting the case.
Since the inception of the Coronavirus Aid, Relief, and Economic Security Act, the U.S. Attorney’s Office has prosecuted 35 defendants. The Office’s enforcement efforts in regard to COVID fraud also include actions to impose monetary judgments and collect assets to recoup some of what was wrongfully taken from taxpayer funds. These actions include criminal and civil forfeiture, criminal restitution, and civil False Claims Act cases. To-date, in dozens of COVID fraud cases, the Western District has already obtained almost $18 million in judgments or settlements and collected over $5.5 million in assets.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it to the Department of Justice’s National Center for Disaster Fraud (NCDF) via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.