Woman used $1 million in COVID loans for plastic surgery, home renovations, feds say
A woman received more than $1.6 million in loans meant to help businesses during the COVID-19 pandemic and used some of the money for plastic surgery and home renovations, among other expenses, according to federal officials.
She’s accused in an indictment of scheming to “personally enrich herself” by “fraudulently obtaining” the loans.
The indictment comes after Nichelle Henson, 35, of Baltimore, allegedly filed “fraudulent applications” and “made false statements” to receive the loans for multiple businesses, officials said in a Justice Department news release on Dec. 15.
She did so “at the expense of honest business owners who were actually experiencing financial distress as a result of COVID-19,” U.S. Attorney Erek L. Barron said in a statement.
If Henson is convicted on all 18 counts she faces, she could be sentenced to decades in prison, according to the release.
Information regarding Henson’s defense attorney wasn’t immediately available and McClatchy News couldn’t reach Henson for comment.
Henson had “incorporated 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,” the release said.
“Beginning in April 2020, Henson filed fraudulent applications on behalf of her businesses” for Economic Injury Disaster Loans (EIDL) and the Paycheck Protection Program (PPP), according to the Justice Department.
For example, when Henson submitted an application for one of the businesses, Your Friendly Tax Preparation Services LLC, it “falsely claimed 10 employees, 2019 Gross Revenue of $36,000” and “Cost of Goods Sold of $13,000” on April 14, 2020, the indictment obtained by McClatchy News shows.
This application resulted in a $10,000 grant, according to the indictment.
The purpose of EIDL and PPP loans was “to provide emergency financial assistance to Americans suffering from the economic effects caused by the COVID-19 pandemic,” the release pointed out.
Henson’s applications submitted under the PPP program “allegedly contained false statements, misrepresentations and omissions related to her purported businesses including their existence, address, payroll expense, and number of employees,” it added.
She is accused of scheming to obtain the PPP loans for her “personal plastic surgery, renovations to a relative’s home,” renovations to her own home, car payments and more, according to the indictment.
Henson “falsely promised” to spend the loans “on allowable expenses such as payroll, business rent and business utilities when she intended to spend the funds on personal expenses,” it said.
“It is reprehensible that fraudsters try to take advantage of this global pandemic to line their own pockets,” Barron said.
“The indictment seeks the forfeiture of any proceeds obtained as a result of the crime, including $678,073.82 seized during the investigation from six bank accounts in the names of some of Henson’s businesses, as well as a money judgment” to recover funds, the release said.
Henson is due to appear in court virtually on Dec. 16.
McClatchy News has reached out to the Justice Department for further comment.
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