Cheyenne couple sentenced in fraud case
Summary
The U.S. Attorney's Office for the District of Wyoming reported on September 12, 2025 that Sean P. Madigan and Victoria Madigan, both 35, of Cheyenne, were each sentenced to five years of supervised probation for crimes related to false statements and wire fraud. Sean Madigan, sentenced June 6, was ordered to pay $161,175 in restitution to the State of Wyoming, and both owe $12,864, joint and several, to the Cheyenne Housing Authority; Victoria Madigan was sentenced September 10. The release says the couple received Section 8 housing assistance while running a coffee shop in the Cheyenne Frontier Mall and did not disclose the business income when certifying eligibility. The release says Covid-19 business relief funds from State of Wyoming grant programs went in material part to household living expenses. HUD investigated (Case No. CR-25-00030 and CR-25-00039).
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Press Release Cheyenne couple sentenced in fraud case Friday, September 12, 2025 For Immediate Release U.S. Attorney's Office, District of Wyoming usawy.pio@usdoj.gov Sean P. Madigan, 35, and Victoria Madigan, 35, of Cheyenne, Wyoming, were both sentenced to five years of supervised probation for crimes related to making false statements and wire fraud. Sean was sentenced on June 6 and the court ordered him to pay $161,175 in restitution to the State of Wyoming. Sean was also ordered to pay $12,864 in restitution, joint and several with his co-defendant Victoria, to the Cheyenne Housing Authority. Victoria was sentenced on September 10 and the court also ordered her to pay $12,864, to be paid joint and several with Sean, to the Cheyenne Housing Authority. According to court documents, Sean and Victoria Madigan were a married couple with three children living in Cheyenne. The couple received housing assistance through the Section 8 Housing Choice Voucher Program while also running a coffee shop in the Cheyenne Frontier Mall. They used the same bank account for the financial needs of the coffee shop and their household, but they did not disclose the income from their business to the Cheyenne Housing Authority when certifying their eligibility for housing assistance. While a false statement to the Cheyenne Housing Authority is not a statement made directly to a federal agency or department, it is still a matter within the jurisdiction of the U.S. Department of Housing and Urban Development (HUD). After various governmental assistance programs became available to help keep businesses from failing due to Covid-19 related restrictions, Sean used the coffee shop to facilitate fraudulently receiving Covid-19 relief funds. Rather than spend Covid-19 business relief funds solely for business purposes as required by the State of Wyoming grant programs, the Madigans spent a material portion of the money on household daily living expenses. “Some argue that white collar crime is a victimless crime, but that could not be further from the truth. We all end up paying when someone defrauds the government—the Madigan’s actions are an outright theft from American taxpayers,” said U.S Attorney Darin Smith. We are grateful for HUD’s extensive investigation which exposed the calculated efforts of this couple to exploit government programs.” "The defendants allegedly engaged in a complex, multi-agency fraud scheme that diverted over $300,000 in critical taxpayer dollars intended to support struggling businesses during an unprecedented pandemic, while also receiving HUD housing assistance through a program that was intended for low income families " said Special Agent-in-Charge Machelle Jindra with the U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG). “HUD OIG remains steadfast in its commitment to working with our prosecutorial partners to aggressively pursue those who engage in activities that threaten the integrity of HUD programs.” HUD investigated the crime and Assistant U.S. Attorney Christyne Martens prosecuted the crime. Case No. CR-25-00030 and CR-25-00039 Contact Lori Hogan (PIO Contractor) United States Attorney’s Office District of Wyoming 307-772-2995 usawy.pio@usdoj.gov @usaowy Updated September 12, 2025 Topics Financial Fraud Healthcare Fraud Component USAO - Wyoming Related Content Press Release No one is above the law—Florida mother-daughter duo sentenced and ordered to pay over $800k for fraud scheme Tera Marie Campbell, 47, of Maitland, Florida, and her daughter, Tayler Ann Krauss, 27, of McDavid, Florida, were sentenced for conspiracy to commit healthcare fraud. July 2, 2026 Press Release Cheyenne restaurant owner sentenced for filing false tax return CHEYENNE, WYOMING – Shu Ping Chen, 48, of Cheyenne, Wyoming, was sentenced to 18 months in federal prison with no supervised release for filing a false tax return. November 13, 2025 Press Release Activity in the U.S. Attorney's Office September 26, 2025
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