Democrat Charlotte City Council member Tiawana Brown and her two daughters have been indicted by a federal grand jury for allegedly obtaining COVID-19 relief funds in a fraudulent nature.
Tiawana Brown, Tijema Brown, and Antionette Rouse, all from Charlotte, have been charged with conspiracy to commit wire fraud and wire fraud for allegedly submitting fraudulent applications to illegally obtain COVID-19 pandemic relief funds, according to US Attorney Russ Ferguson for the Western District of North Carolina.
Between April 2020 and September 2021, the defendants “conspired to execute a wire fraud scheme to defraud the Small Business Administration’s (SBA) Economic Injury Disaster Loan (EIDL) program and its Paycheck Protection Program (PPP) to obtain COVID-19 pandemic relief funds through the submission of loan applications containing false information or false documentation,” reads the indictment.
“The false documentation generally included fake and fraudulent tax forms that lied about gross income and number of employees, among other misrepresentations,” said the indictment. “Defendants also submitted false statements for PPP loan forgiveness. Defendants submitted at least fifteen applications for EIDL or PPP funds.”
Altogether, the three secured more than $124,000 through fraudulent PPP and EIDL loans, with prosecutors alleging they spent the majority of the funds on personal expenses including luxury items from Louis Vuitton and $15,000 on a lavish birthday party for the councilwoman featuring a throne and a horse-drawn carriage.
If convicted, they face a maximum sentence of 20 years in prison for each offense charged in the indictment.
In a press release on Thursday, Brown insists these alleged activities took place during the early stages of the pandemic and before she was a member of the Charlotte City Council. Brown also said she will not resign and that she plans to run for reelection for her District 3 seat.
During a Thursday press conference, Brown insisted she had already paid the loans back and called it a political attack.
“There’s some PPP loans out there that just came up that never touched the courtroom. So if it’s about justice and I paid it back, why are we here? I paid it back on my own. No one had to tell me to do that,” she explained.
Brown had previously served several years in federal prison in her 20s on a felony fraud conviction.
“I am not here to be tried in the media,” said Councilwoman Brown. “However, I must address the allegations against me by the United States District Court. I will have my day in court, and I trust the process.”
The three defendants are scheduled for an initial appearance in a Charlotte court room on Friday, the 23rd.