United States of America v. Khadijah X. Chapman; Daniel C. Labrum and Eric J. O’Neil

Boise, Idaho criminal defense lawyer represented the Defendants charged with a COVID-19 Relief Fraud Scheme.

Three Individuals Sentenced for $3.5M COVID-19 Relief Fraud Scheme

Three defendants were sentenced for fraudulently obtaining and misusing Paycheck Protection Program (PPP) loans that were issued by a Boise financial institution and that were guaranteed by the U.S. Small Business Administration under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The defendants' conduct was part of larger COVID-19 fraud ring.



Chapman, Labrum, and O'Neil fraudulently obtained PPP loans for fictitious businesses in 2020 and 2021. The defendants worked with co‑conspirators to falsify information and submitted fraudulent documents to financial institutions in Boise and elsewhere to collectively obtain approximately $3.5 million in relief funding intended for small businesses struggling with the economic impact of COVID-19.



Chapman was convicted after a jury trial in November 2023 of bank fraud. Labrum and O'Neil pleaded guilty in 2023 to bank fraud.



Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department's Criminal Division, Special Agent in Charge Thomas M. Fattorusso of IRS Criminal Investigation (IRS:CI) New York, Assistant Director Michael D. Nordwall of the FBI's Criminal Investigative Division, Special Agent in Charge Matthew Miraglia of the FBI Buffalo Field Office, Inspector General Gail S. Ennis of the Social Security Administration Office of the Inspector General (SSA-OIG), Special Agent in Charge Sharon B. MacDermott of SSA-OIG, and Inspector in Charge Ketty Larco-Ward of the U.S. Postal Inspection Service (USPIS) Boston Division joined U.S. Attorney Hurwit in making the announcement.



IRS:CI, the FBI, SSA-OIG, and USPIS investigated the cases.



Trial Attorneys Jennifer Bilinkas and Tamara Livshiz of the Justice Department's Criminal Division's Fraud Section and Assistant U.S. Attorney Sean Mazorol for the District of Idaho prosecuted the cases.



On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Justice Department in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department's response to the pandemic, please visit www.justice.gov/coronavirus.



Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department's National Center for Disaster Fraud (NCDF) Hotline at 866‑720‑5721 or via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

Defendant was found guilty and Khadijah X. Chapman was sentenced to three years and 10 months in prison; Daniel C. Labrum was sentenced to two years in prison; and Eric J. O’Neil was sentenced to two years and three months in prison.