New Orleans, Louisiana - A New Orleans, Louisiana woman, Tamika Chappell, 40, has been sentenced to five years of probation for making false statements related to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), making false statements to the Internal Revenue Service (IRS), and theft of government funds. U.S. District Court Judge Carl J. Barbier handed down the sentence on August 29, 2024.

Chappell's case involved fraudulent activities related to the Paycheck Protection Program (PPP), a key component of the CARES Act. The PPP was designed to provide financial assistance to small businesses affected by the COVID-19 pandemic. Qualifying businesses could receive loans with a maturity of two years and an interest rate of 1%. The loan proceeds were meant to be used on payroll costs, interest on mortgages, rent, and utilities, with the possibility of forgiveness if the business spent the loan proceeds on these expense items within a designated period of time.

However, Chappell took advantage of the program by making false statements to obtain PPP loans and misusing the funds. She was ordered to pay a total of $484,908 in restitution to various government agencies, including the Small Business Administration, the IRS, and the Social Security Administration, as well as a victim bank. Chappell was also required to pay a mandatory $300 special assessment fee.

The investigation was led by the Pandemic Response Accountability Committee (PRAC) Fraud Task Force, a collaborative effort between 15 Inspectors General to detect fraud, waste, abuse, and mismanagement in the more than $5 trillion in COVID-19 spending. The task force brings together agents with expanded authority to investigate pandemic fraud, as well as tools and training to support their investigations.

U.S. Attorney Duane A. Evans praised the work of the PRAC member agencies, including the U.S. Department of Veterans Affairs - Office of Inspector General, the Social Security Administration, and the Internal Revenue Service - Criminal Investigations, in investigating this matter. Assistant U.S. Attorney Edward J. Rivera of the Financial Crimes Unit prosecuted the case.