Baltimore, MD. — A federal judge has sentenced a Baltimore woman to four years in prison for orchestrating a large-scale fraud scheme involving COVID-19 relief programs.
U.S. District Judge Matthew J. Maddox sentenced Nichelle Henson, 38, to 48 months in federal prison for bank fraud and making false statements connected to fraudulent Economic Injury Disaster Loan (EIDL) and Paycheck Protection Program (PPP) applications.
The sentence was announced by Kelly O. Hayes, U.S. Attorney for the District of Maryland, alongside Jimmy Paul, Special Agent in Charge of the FBI Baltimore Field Office.
Evidence presented at trial showed that Henson incorporated multiple businesses with the State of Maryland, including Crowns Construction, LLC; Nichelle Henson Campaign, LLC; One Stop for Services, LLC; Your Friendly Tax Preparation Services, LLC; Women Entrepreneurs Can Succeed, LLC; and Peace of Mind Services, Inc. She opened bank accounts and obtained Tax Identification Numbers for several of the entities.
In 2020 and 2021, Henson submitted six fraudulent EIDL applications to the U.S. Small Business Administration, falsely claiming business revenues, expenses, and employees. None of the businesses were operating or had employees at the time. The fraudulent applications resulted in $18,000 in U.S. Treasury funds.
Between April and June 2020, Henson also submitted six fraudulent PPP applications, including one for Nichelle Henson Campaign, an entity tied to a Baltimore City Council campaign she had withdrawn from months earlier. Those applications resulted in $998,590 in funds.
On January 19, 2021, Henson submitted six additional fraudulent PPP applications to M&T Bank, again misrepresenting business operations, payroll, and employees. In total, Henson obtained $1,692,840 through the scheme.
Prosecutors said Henson used the funds for impermissible purposes, including cosmetic surgery, extensive home renovations, rent payments, and funding failed business ventures, including a used-car dealership and a cryptocurrency project known as “Subina Coin” tied to an entity called the Adageyhdi Indian Nation.
The case was prosecuted as part of the District of Maryland COVID-19 Strike Force, one of five strike forces established by the U.S. Department of Justice to combat pandemic-related fraud under the CARES Act.
Officials credited the FBI and the Pandemic Response Accountability Committee Fraud Task Force for their investigative work. Assistant U.S. Attorney Joseph Wenner prosecuted the case.
Anyone with information about suspected COVID-19 relief fraud can report it to the Department of Justice’s National Center for Disaster Fraud.
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