Sep 30, 2024
DENVER (KDVR) — An online shop owner who was found guilty earlier this year by a federal jury of defrauding federal COVID-19 relief programs was sentenced Thursday to serve 90 months in prison. According to the U.S. Attorney's Office for the District of Colorado, Shambrica Washington, 39, now a resident of Parker, Texas, and previously a resident of Colorado Springs, was sentenced to serve 90 months in prison (seven and a half years) followed by three years of supervised release and paying restitution of over $542,900, or the amount she purportedly obtained through unlawful measures. Washington was found guilty by a federal jury in June of 31 charges, which were: Three counts of wire fraud Two counts of bank fraud 22 counts of money laundering Four counts of making false claims Court records show Washington obtained two Small Business Administration loans under the Economic Injury Disaster Loan program and two Paycheck Protection Program loans, intended for small businesses struggling with COVID-19 restrictions and economic impacts, for $485,749 between March and July 2020. Billions in pandemic fraud: DOJ looking to recover every penny of COVID relief fraud The loans were provided to Washington under two business names: Tiny Toes and Tiaras, an online luxury baby boutique, and Truelove's Daughters Inc., a mentorship nonprofit based in Colorado Springs. According to the U.S. Attorney's Office, Washington misrepresented the number of employees at her businesses', in addition to the businesses' wages, revenues and costs of operations. When she received the money, the U.S. Attorney's Office said, she used the funds to buy a car, a custom-built home, elective surgery, and pay for credit card debt and other bills. The office said Washington then applied for millions more in additional loans, grants and tax credits. Washington allegedly applied for advance tax credits from the Internal Revenue Service, plus a $6 million grant through a Small Business Administration program intended for shuttered concert venues. “People who steal taxpayer dollars for personal benefit can and will pay the price,” said Acting United States Attorney for the District of Colorado Matt Kirsch in a release. “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.” Washington is one of many investigated by one of five national COVID-19 Fraud Strike Force Teams. One of those teams is led by the U.S. Attorney's Office based in Denver to combat COVID-19 fraud. As of April, the U.S. Justice Department had filed federal criminal charges against over 3,500 defendants and had also seized over $1.4 billion in COVID-19 relief funds that were fraudulently obtained.
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