Woman receives 7.5-year prison sentence for coronavirus pandemic program fraud
(The Center Square) – A woman received a 90-month prison sentence and three years of supervised release for committing a litany of white-collar crimes related to coronavirus pandemic relief funds.
Shambrica Washington, 39, of Parker, Texas, received that punishment and must pay $542,924.45 in restitution after being found guilty by a federal jury on 31 counts, including wire fraud, bank fraud, money laundering, and false claims offenses, according to the United States Attorney for the District of Colorado.
Washington got loans from the Small Business Administration for two Economic Injury Disaster Loans and from JP Morgan Chase for two Paycheck Protection Program loans worth $485,749.00 from March 2020 to July 2020.
She got the loans under two business names, including an online luxury baby boutique called “Tiny Toes and Tiaras” based in Colorado Springs,
To get these loans, Washington misrepresented the number of employees her businesses had, along with the businesses’ wages, revenues, and operating costs.
Washington used this money to buy a car and a custom-built house, pay for elective surgery, and pay off bills, including credit card debt.
Washington then applied for millions in loans, grants, and tax credits. These included advance tax credits from the Internal Revenue Service and a $6 million grant from a Small Business Administration program meant for shuttered concert venues.
“People who steal taxpayer dollars for personal benefit can and will pay the price,” Acting United States Attorney for the District of Colorado Matt Kirsch said in a statement. “Our office has and will continue to find people who have abused Covid-19 funds and prosecute them to the fullest extent of the law.”
Tom Demeo, Acting Special Agent in Charge, IRS Criminal Investigation Denver Field Office, said the IRS takes these matters seriously.
“Shambrica Washington fraudulently obtained PPP and EIDL designated to provide Americans financial relief during the COVID-19 pandemic,” Demeo said. “Washington’s sentence demonstrates the federal government’s commitment to holding individuals accountable who defrauded critical programs that served to provide aid for families and small businesses.”
