Wellington Brown, age 53, of New Orleans, was charged by bill of information on March 31 with providing a materially false statement to the Small Business Administration in an application for a government-sponsored loan intended to help small business owners during the COVID-19 pandemic, U.S. Attorney David I. Courcelle announced on Apr. 2.
The charge relates to federal efforts to address fraud in pandemic relief programs. Such programs were designed to support businesses affected by the COVID-19 crisis.
According to the announcement, the maximum penalty for making false statements to a federal agency is five years in prison and/or a fine of up to $250,000. The sentence could also include up to three years of supervised release and a mandatory $100 special assessment fee.
Courcelle said that “the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.” He praised the work of the Veterans Affairs Office of Inspector General for investigating this matter. Assistant United States Attorney Richard R. Pickens II from the Financial Crimes Unit is leading the prosecution.
More information about how the Department of Justice has responded to issues arising from the pandemic can be found at https://www.justice.gov/coronavirus. Individuals who have information regarding attempted fraud involving COVID-19 relief funds are encouraged to report it by calling 866-720-5721 or submitting details through https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
