Based on courtroom paperwork, Malik Mitchum, 26, and Jenna Mitchum, 25, labored collectively to acquire disaster-related mortgage advantages within the type of Small Enterprise Administration-sponsored Financial Damage Catastrophe loans and Paycheck Safety Program loans.
These applications, initiated and expanded below The Cares Act, are designed to supply assist for small companies for bills associated to the COVID-19 pandemic.
The Mitchums falsely claimed that they have been house owners of at the very least 5 small companies struggling throughout the pandemic. In actuality, Malik Mitchum was a junior enlisted member of the Air Pressure and Jenna Mitchum was unemployed.
Between March 2020 and Might 2021, the Mitchums submitted at the very least 19 fraudulent purposes for pandemic-related mortgage advantages that contained false statements and misrepresentations about their revenue, employment, and claimed enterprise entities. They’re additional linked to greater than 20 different fraudulent mortgage purposes by the IP tackle used to submit the purposes or wire transfers of fraud proceeds. They meant to defraud the federal government out of greater than $5.1 million and triggered an precise loss to the USA and collaborating monetary establishments of greater than $1.4 million. Malik and Jenna Mitchum spent a lot of the fraud proceeds they obtained on luxurious purchases, like a Rolex look ahead to $38,743.
Malik and Jenna Mitchum pleaded responsible to conspiracy to commit wire fraud affecting a monetary establishment. They each face a most penalty of 30 years in jail. Malik and Jenna Mitchum are scheduled to be sentenced on July 29.