A former Charlotte, North Carolina, city councilwoman has been sentenced to prison after pleading guilty to conspiring with her two daughters to fraudulently obtain more than $146,665 in federal COVID-19 relief loans.
Tiawana Brown, 55, was sentenced Tuesday to 10 months in federal prison followed by two years of supervised release and agreed to forfeit $22,500 in fraud proceeds, according to the U.S. Attorney’s Office for the Western District of North Carolina. Her daughters, Tijema Brown, 32, and Antionette Rouse, 34, were sentenced to two years of probation and four months of home detention, respectively. Each daughter agreed to forfeit $51,666.
The family submitted at least 13 applications for loans through the Small Business Administration’s Paycheck Protection Program and Economic Injury Disaster Loan program between April 2020 and September 2021. Prosecutors said the applications contained false information and fictitious supporting documents, including a fabricated IRS Schedule C tax form.
The defendants received at least $146,665 in pandemic relief loans intended for qualifying business expenses but instead used the money for personal spending. Prosecutors said approximately $15,000 went toward a personal birthday party for Brown.
The three defendants were also ordered to pay $137,280.09 in restitution to the Small Business Administration. Brown has paid $20,833 toward that amount so far, according to federal prosecutors.
U.S. District Judge Kenneth D. Bell addressed the circumstances surrounding the fraud when imposing the sentences, noting that the relief programs were created during a period of severe economic disruption. “The public is tired of being ripped off,” Bell said.
The FBI in Charlotte investigated the case, which was prosecuted by Assistant U.S. Attorney Matthew Warren. The case is part of broader federal efforts to investigate fraud involving COVID-era relief programs, including enforcement work by the Justice Department’s National Fraud Enforcement Division.
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