A former Small Enterprise Administration (SBA) worker from Miami, Malaina Chapman, 38, was sentenced on June 13 to 54 months in prison, adopted by three years of supervised launch, for fraudulently acquiring COVID-19 aid funds and spending them on luxurious objects. She was additionally ordered by United States District Decide Rodolfo A. Ruiz II to pay $1,297,178 in restitution.
Chapman labored as a Catastrophe Reduction Specialist with the SBA from September 28, 2020, to March 18, 2021. Throughout that point, she engaged in a number of schemes to defraud the Paycheck Safety Program (PPP), the Financial Damage Catastrophe Mortgage (EIDL) program, native credit score unions, and state and native COVID-19 aid applications.
Court docket paperwork reveal that on February 10, 2021, Chapman submitted a fraudulent mortgage software within the identify of Upscale Credit score Lounge, LLC. She falsified a Schedule C (Kind 1040), claiming $103,674 in gross revenues and $81,860 in income for 2020. This led to the approval of a mortgage for $17,052.50.
9 days later, on February 19, 2021, Chapman filed one other false PPP mortgage software for DA TRAP, LLC, claiming 4 workers and a month-to-month payroll of $14,191. She submitted a fraudulent Employer’s Quarterly Tax Return (Kind 941) to help this. The lender accredited a mortgage for $35,477.50 based mostly on her claims.
In whole, Chapman obtained $230,246 by means of loans she utilized for on her personal behalf. She additionally conspired with others in submitting false PPP purposes, leading to losses totaling $837,716 attributed to her.
Moreover, Chapman exploited Florida’s and Miami’s COVID-19 Emergency Rental Help Packages.
Authorities uncovered that Chapman spent the stolen funds on luxurious purchases from Louis Vuitton, Nordstrom, Goyard, Chanel, Fendi, in addition to on a designer teacup pet and a $7,500 keep at a Key Largo luxurious resort.
The investigation was led by the U.S. Postal Service Workplace of Inspector Normal (USPS OIG), SBA Workplace of Inspector Normal (SBA OIG), and Division of Labor Workplace of Inspector Normal (DOL-OIG).
U.S. Lawyer Hayden P. O’Byrne and particular brokers from these companies introduced the sentencing. Assistant U.S. Lawyer Daniel Bernstein prosecuted the case, with asset forfeiture dealt with by Assistant U.S. Lawyer Gabrielle Charest-Turken.
The CARES Act, enacted in March 2020, offered emergency monetary help to people and companies affected by the COVID-19 pandemic, together with by means of SBA-administered EIDLs and PPP loans. Chapman’s fraud undermined this important aid effort.
