Former Louisiana Resident Charged With Cares Act Fraud

NEW ORLEANS – U.S. Attorney Duane A. Evans announced that BRANDI WEBER, age 28, formerly of New Orleans, LA and now residing in California, was charged on March 1. 2023 in a one-count bill of information with making false statements related to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) pursuant to Title 18, United States Code, Section 1001.

On March 27, 2020, The CARES Act established several new temporary programs and provided for the expansion of others to address the COVID-19 pandemic. Among these programs, the Paycheck Protection Program (PPP) authorized forgivable loans backed by the U.S. Small Business Administration (SBA) to small businesses to retain workers and maintain payroll, make mortgage interest payments, lease payments, and utility payments. The PPP allows the interest and principal on the PPP loan to be forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses at least a certain percentage of the PPP loan proceeds on payroll expenses. 

According to the charging documents, WEBER made false statements to an approved lender on or about April 2, 2021, for the purpose of fraudulently obtaining a PPP loan, which she later received in the amount of approximately $10,302.00. WEBER stated in her PPP application that she was a self-employed esthetician impacted by the pandemic when, in truth, she had no such business in 2020.

WEBER faces a sentence of up to five years in prison, up to $250,000 in fines, and up to three years of supervised release for the false statements count. There is also a $100 mandatory special assessment fee due after conviction. U.S. Attorney Evans reiterated that a bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.

U.S. Attorney Evans reiterated that the bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.

For more information on the Department of Justice’s response to the pandemic, please visit https://www.justice.gov/coronavirus. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

U.S. Attorney Evans praised the work of the Amtrak Office of Inspector General – Criminal Investigations in investigating this matter.  Assistant U.S. Attorney Edward J. Rivera of the Financial Crimes Unit is in charge of the prosecution.