U.S. Attorney Robert J. Troester | U.S. Department of Justice
Madinah Malikah Montgomery, a 33-year-old resident of Oklahoma City, has been sentenced to 24 months in federal prison for wire fraud and ordered to pay $300,000 in restitution. The announcement was made by U.S. Attorney Robert J. Troester.
Montgomery faced charges on March 19, 2024, for wire fraud related to the Economic Injury Disaster Loan (EIDL) program, which was expanded by the Small Business Administration (SBA) during the COVID-19 pandemic to aid struggling small businesses. According to court documents, on July 16, 2020, Montgomery submitted a fraudulent EIDL loan application for $150,000 claiming ownership of a salon with ten employees and gross revenues of $600,000. As a result of her false claims, she received $149,900 from the SBA.
On April 3, 2024, Montgomery pleaded guilty to filing a fraudulent application and admitted to receiving $149,000 used partly for personal expenses.
During her sentencing on November 22, 2024, it was argued that Montgomery had applied for three separate EIDL loans totaling $385,000 over three months and received $300,000. U.S. District Judge Stephen P. Friot sentenced her to two years in federal prison followed by three years of supervised release. Judge Friot emphasized the seriousness of defrauding the United States out of funds intended for businesses impacted by the pandemic and noted her extensive criminal history.
Montgomery's previous felony convictions include possession with intent to distribute marijuana and drug paraphernalia in Oklahoma County District Court case CF-2009-03754; grand larceny in case CF-2014-4967; bringing contraband into a penal institution and conspiracy in Beckham County District Court case CF-2022-00142.
In another case in the Western District of Oklahoma (case number 24-CR-348), she faces charges for possession of fentanyl with intent to distribute but has pleaded not guilty.
The investigation involved multiple agencies including the United States Secret Service and IRS Criminal Investigations. Assistant U.S. Attorney Bow Bottomly prosecuted the case.
This prosecution is part of efforts by the Western District of Oklahoma Coronavirus Fraud Task Force aimed at addressing fraud related to pandemic relief programs like those funded by CARES Act and ARPA.
Reference is made to public filings for additional information.
