Malaina Chapman, a former Small Business Administration employee, was sentenced to over four years in prison for committing fraud related to pandemic loans intended for small businesses. She was found guilty of conspiracy to commit wire fraud by submitting fraudulent loan applications and advising others on similar actions. Alongside an associate, Chapman reportedly stole over $1 million from federal programs meant for economic relief during COVID-19. Additionally, Chapman was ordered to repay $1.3 million to the SBA, highlighting the extent of her fraudulent activities and misuse of trust-based government programs.
As the coronavirus swept across the country, the two South Florida women teamed up to steal more than $1 million in federal government loans that were meant to help small businesses survive the economic collapse during the public health crisis.
Chapman was making about $57,000 a year as an SBA employee when she stole not only from the agency's PPP loan program but also from other relief programs at the federal, state and local levels.
In a sentencing memo, Bernstein said Chapman 'never met a trust-based government program that she didn't steal from,' calling her 'a financial predator who views government resources as her own personal piggy bank.'
Chapman was sentenced to over four years in prison for committing fraud, ordered to pay back about $1.3 million, reflecting the seriousness of her crimes against the government.
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