Charlotte Woman Charged With COVID-19 Relief Loan Fraud

Charlotte NC

24 February, 2021

10:27 AM

Description

CHARLOTTE, NC — A 24-year-old Charlotte woman indicted by a federal grand jury made her first appearance in court this week after she was accused of fraudulently obtaining a $150,000 emergency COVID-19 relief loan from the U.S. Small Business Administration and then shopping at numerous retail stores. Jasmine Johnnae Clifton, 24, was indicted by the grand jury Feb. 17, charged with wire fraud in relation to disaster benefit and fraud in connection with major disaster or emergency benefits. Each charge carries a maximum prison sentence of up to 30 years, and collectively a potential fine of up to $1.25 million, according to the U.S. Attorney's Office of the Western District of North Carolina. According to the indictment, the charges center on the online retail store Jazzy Jas LLC, which Clifton created in April 2019. "On July 24, 2020, Clifton submitted a fraudulent loan application to the SBA for Jazzy Jas, despite the fact the company had been dissolved by Clifton several months prior," DOJ said. "As a result of the fraudulent application, which included false information about revenues and a fraudulent tax document, Clifton obtained $149,900 in disaster relief funds that were intended to be provided to an existing business harmed by the COVID-19 pandemic." Clifton received the money in August when they were deposited directly into her bank account, then allegedly used the money to shop at numerous retail stores, including Nordstrom, Ikea, Neiman Marcus, Rooms To Go, Louis Vuitton, Best Buy and multiple diamond stores, DOJ said. "The charges in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond reasonable doubt in a court of law," DOJ said. Following her court appearance Monday, Clifton was released on bond.