Online boutique owner found guilty of nearly $500K in COVID-19 relief fraud

DENVER (KDVR) — A federal jury found a former Colorado Springs resident guilty of defrauding federal COVID-19 relief programs for nearly a half million dollars.

Shambrica Washington, 39, who now lives in Texas but is formerly of Colorado Springs, was found guilty on Friday of 31 charges, namely:

• Three counts of wire fraud
• Two counts of bank fraud
• 22 counts of money laundering
• Four counts of making false claims

Court records show Washington got two Small Business Administration loans under the Economic Injury Disaster Loan program and two Paycheck Protection Program loans , intended for small businesses struggling with COVID-19 restrictions and economic impacts, for $485,749 between March and July 2020. The loans were provided to Washington under two business names: Tiny Toes and Tiaras, an online luxury baby boutique, and Truelove’s Daughters Inc., a mentorship nonprofit based in Colorado Springs.

“CARES Act funds were meant to provide direct economic assistance to American workers and businesses negatively impacted by the COVID-19 pandemic,” Special Agent in Charge Mark Michalek said in a press release . “This defendant fraudulently obtained hundreds of thousands of dollars under this program to buy homes, vehicles, and elective surgery. The FBI will continue to pursue such criminal opportunists and hold them accountable.”

According to the U.S. Attorney’s Office for the District of Colorado, Washington intentionally misrepresented how many employees she had and the businesses’ wages, revenues and cost of operations. Then, she used the loans to purchase a car, a custom-built home, elective surgery and to pay off credit card debt and other bills.

“The defendant in this case fraudulently took money from American taxpayers for her own personal benefit,” acting U.S. Attorney for the District of Colorado Matthew Kirsch said in a release. “Our office and the Department of Justice will continue to seek out and prosecute individuals who took advantage of programs meant to help those in need during the COVID-19 pandemic.”

The U.S. Attorney’s Office said Washington also applied for millions in additional loans, grants and tax credits — including applying for advance tax credits from the Internal Revenue Service and a $6 million grant through a program intended for shuttered concert venues.

A sentencing date for Washington has been set for Sept. 26 and she was released on bond.

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