COVID-19 Relief Fraudster Convicted of Bank Fraud

Summary

A Justice Department news release published November 16, 2023, announcing that a federal jury in Boise, Idaho, convicted Khadijah X. Chapman of bank fraud. The release states that, according to court documents and evidence presented at trial, Chapman worked with co-conspirators to falsify financial information and obtained and misused a $338,958 Paycheck Protection Program loan. Chapman is scheduled to be sentenced on Feb. 6, 2024, and faces a maximum penalty of 30 years in prison. The release adds that Daniel Labrum and Eric O'Neil, who were involved in the same fraud ring, pleaded guilty before a federal district judge in Boise.

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Full text

A federal jury in Boise, Idaho, convicted a Georgia woman today for fraudulently obtaining and misusing a $338,958 Paycheck Protection Program loan that the Small Business Administration (SBA) guaranteed under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
According to court documents and evidence presented at trial, Khadijah X. Chapman, 59, of Atlanta, worked with co-conspirators to falsify financial information and submit several fraudulent applications to financial institutions in Boise and elsewhere to steal relief funding. Chapman stole $338,958 from a financial institution in Boise and submitted several other false and fraudulent applications to the SBA and financial institutions around the country in hopes of stealing more funding. Chapman used the stolen funds for personal expenses, such as purchasing jewelry and paying off credit card bills for herself and family members.
The jury convicted Chapman of bank fraud. She is scheduled to be sentenced on Feb. 6, 2024, and faces a maximum penalty of 30 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Earlier this year, Daniel Labrum and Eric O’Neil, who were both involved in the same COVID-19 fraud ring as Chapman, pleaded guilty before a federal district judge in Boise. They are scheduled to be sentenced later this year.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Josh Hurwit for the District of Idaho, Special Agent in Charge Thomas M. Fattorusso of IRS Criminal Investigation (IRS-CI) New York, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, Special Agent in Charge Matthew Miraglia of the FBI Buffalo Field Office, Inspector General Gail S. Ennis of the Social Security Administration Office of the Inspector General (SSA-OIG), Special Agent in Charge Sharon B. MacDermott of SSA-OIG, and Inspector in Charge Ketty Larco-Ward of the U.S. Postal Inspection Service (USPIS) Boston Division made the announcement.
IRS-CI, the FBI, SSA-OIG, and USPIS investigated the case.
Trial Attorneys Jennifer Bilinkas and Tamara Livshiz of the Criminal Division’s Fraud Section are prosecuting the case, with invaluable assistance from Assistant U.S. Attorney Sean M. Mazorol and the U.S. Attorney’s Office for the District of Idaho.

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