CHARLOTTE — A Charlotte woman accused of submitting hundreds of thousands of dollars in fraudulent COVID-19 relief loan applications was indicted by a grand jury last week, according to the U.S. Attorney’s Office for the Western District of Carolina. North.
Nkhenge Shropshire, 48, was charged with wire fraud conspiracy for attempting to obtain more than $300,000 in relief funds using false information, the indictment said.
Over two months in 2020, Shropshire and his co-conspirators allegedly submitted at least 10 fraudulent Economic Injury Loan (EIDL) applications to the US Small Business Administration (SBA), the indictment alleges. .
EIDL benefits have been made available to business owners affected by the pandemic through the expanded Coronavirus Aid, Relief, and Economic Security (CARES) Act. To receive a loan under the program, business owners had to submit income and employment information.
The indictment alleges that the applications submitted by Shropshire and his accomplices related to fictitious businesses and included false information and supporting documents.
They attempted to obtain at least $331,072 in relief funds, according to the indictment. At least $45,000 was paid by the SBA to Shropshire and its co-conspirators as a result of the scheme.
Shropshire allegedly spent the fraudulent proceeds on personal expenses including hotel stays, shopping trips and cars.
Shropshire was previously convicted of filing false tax returns and lying on a loan application in 2014, court records show. She was sentenced to 33 months in prison and five years of probation.
Officials said she was still on probation when she allegedly committed the COVID-19 loan fraud.
Shropshire is in federal custody until his first court appearance in Charlotte, the US attorney said.
(WATCH BELOW: Local pastor charged with tax evasion, filing bogus PPP loan applications)
©2022 Cox Media Group