Louisiana Woman Charged with Fraud After Allegedly Obtaining Economic Relief Funds Using False Information

Louisiana – A Louisiana woman has been charged with fraud after she allegedly obtained economic relief funds using false information.

On Tuesday, February 14, 2023, U.S. Attorney Duane A. Evans announced that Chanel Galle, of New Orleans, Louisiana, age 44, was indicted on February 10, 2023, by a federal grand jury for two counts of making false statements related to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).

The CARES Act went into force on March 27, 2020, establishing a number of new temporary initiatives and authorizing the expansion of others to combat the COVID-19 pandemic. Among these programs, the Paycheck Protection Program (PPP) authorized small businesses to receive forgivable loans backed by the U.S. Small Business Administration (SBA) in order to retain workers and maintain payroll, as well as make mortgage interest payments, lease payments, and utility payments. The PPP allows for the interest and principal on the PPP loan to be forgiven provided the business spends the loan proceeds on these expense items within a certain time frame after receiving the loan proceeds and uses a minimum percentage of the PPP loan proceeds on payroll expenses.

In order to fraudulently obtain a PPP loan, Galle allegedly made false representations to an authorized lender on or around February 18, 2021. Galle falsely stated in her PPP application that her Coco’s Companion Care LLC had a specific number of employees and payroll expenses. Based on the subsequent misrepresentations, Galle collected roughly $20,830.00. Then, on or around March 30, 2021, Galle made false representations to an authorized lender in order to fraudulently obtain a second PPP loan. Falsely claiming to manage a beautician service, Galle collected roughly $20,832.00.

Galle faces a maximum of five years in prison, a maximum of $250,000 in fines, and a maximum of three years of supervised release for each count of false statements. After conviction, an additional special assessment cost of $100 per offense is required.

U.S. Attorney Evans reaffirmed that an indictment is only a charge and that the defendant’s guilt must be established beyond a reasonable doubt.

For additional information regarding the Department of Justice’s response to the pandemic visit https://www.justice.gov/coronavirus . The NCDF Web Complaint Form is available at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

U.S. Attorney Evans lauded the Federal Bureau of Investigation’s investigative efforts in this case. Financial Crimes Unit Assistant U.S. Attorney Edward J. Rivera is in charge of the prosecution.