Tiny Toes and Tiaras. Two online luxury baby boutiques owned by Shambrica Washington that probably weren’t impacted too much by the pandemic. After all, online businesses are noted to have flourished during the pandemic and the uber rich didn’t exactly feel the economic pinch. And a baby must have designer clothes. But none of this prevented Washington from obtaining almost half a million in Economic Injury Disaster loans and Paycheck Protection Program loans under her two businesses. However, court records show that instead of saving her bougie businesses or keeping supposed employees on payroll, Washington spent the fraudulently obtained funds on homes, vehicles and elective surgery during the shutdown. On June 30, 2024, Shambrica Washington was found guilty of COVID-19 loan fraud. A win for Colorado’s justice system. One of many to come. Because Colorado is just getting started.
Colorado is one of five districts nationwide that have a COVID fraud strike force. Former Acting U.S. Attorney for the District of Colorado Matt Kirsch has stated “If you took money from struggling businesses to survive the pandemic, there’s a warning from the Department of Justice: A “COVID-19 Strike Force team is coming for you.”
The Small Business Administrations office gave more than a trillion dollars from the Paycheck Protection Program and the Economic Injury Disaster Loan programs. Of which it is estimated that about $200 billion of that money may have been connected to fraud. And the government wants every penny back. Congress recently expanded the statute of limitations to ten years to prosecute Payment Protection Program fraud cases. Do fraudsters actually wait in anticipation to be found? If they do, they can turn themselves in to get a more lenient sentence.
Great job by the COVID-19 Fraud Strike Force.
Today’s Fraud of The Day is based on article “Billions in pandemic fraud: DOJ looking to recover every penny of COVID relief fraud” published by KDVR News on July 18, 2024.
If you took money from struggling businesses to survive the pandemic, there’s a warning from the Department of Justice: A “COVID-19 Strike Force” team is coming for you. Congress expanded the statute of limitations to ten years to prosecute Payment Protection Program fraud cases, and law enforcement is warning that if you cheated the system, you’re not in the clear. FOX31 learned billions of dollars ended up in the wrong hands and the government wants every penny back.
“The funds were meant for a good reason, and it was super important to keep our economy running at that time,” said Jonathan Towle, acting special agent in charge for the IRS Criminal Investigation Denver Field Office.
