Former Baltimore City Council candidate found guilty of COVID-19 relief fraud
A former Baltimore City Council candidate has been found guilty of defrauding COVID-19 relief programs of nearly $1.7 million, federal prosecutors said Monday.
Nichelle Henson, 38, was found guilty of bank fraud and making false statements after a one-week trial. Evidence revealed Henson submitted fraudulent applications for Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) loans for several businesses that weren't operational.
Henson used the illegally obtained funds for cosmetic surgery, home renovations, rent payments, and business ventures including a used car dealership that never opened and a cryptocurrency she created called "Subina Coin," according to prosecutors.
Prosecutors said Henson filed six fraudulent EIDL applications and 12 fraudulent PPP loan applications between 2020 and 2021. One application was submitted for her campaign organization months after she had withdrawn her candidacy for Baltimore City Council.
In another instance, Henson claimed to run a construction business at an address that was actually a vacant lot. Prosecutors said she doctored a neighbor's utility bill to support the application.
M&T Bank froze Henson's accounts and alerted authorities after she withdrew cash from accounts containing PPP funds.
Henson faces up to 30 years in prison for each count of bank fraud and five years for each false statement charge. U.S. District Judge Matthew J. Maddox scheduled sentencing for August 5.
