William Chadwick, 63, of Akron, Colorado, has been sentenced to 15 months in federal prison and one year of supervised release after pleading guilty to money laundering. He was also ordered to pay restitution totaling $228,284.09.
According to court documents, between May 2020 and August 2022, Chadwick laundered funds from federal COVID-19 relief programs. The proceeds came from Unemployment Insurance benefits, Emergency Rental Assistance payments, Paycheck Protection Program loans, and other fraudulent sources. The laundered funds were linked to a woman Chadwick met online and included transactions such as ATM withdrawals and cryptocurrency exchanges. In total, he processed approximately $228,284.09 in illicit proceeds.
United States Attorney Peter McNeilly stated: “Laundering money which was stolen from the federal government is a crime against every hard-working, tax-paying citizen of the United States. Our office is committed to prosecuting those who look to prosper off fraud against the government.”
Quentin Heiden, Special Agent-in-Charge for the Western Region at the U.S. Department of Labor Office of Inspector General added: “Chadwick laundered fraudulently obtained unemployment insurance funds intended for Americans that were struggling during the pandemic. This sentence highlights our commitment to relentlessly investigate fraud in DOL’s unemployment insurance program. We will continue to work with our law enforcement partners to hold accountable bad actors who perpetrate these crimes.”
The sentencing took place before United States District Judge William J. Martinez.
The investigation was conducted by the Department of Homeland Security Office of Inspector General and the Department of Labor Office of Inspector General. Assistant United States Attorney Nicole Cassidy prosecuted the case.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was passed in March 2020 to help Americans cope with financial hardship caused by COVID-19. The CARES Act created programs like the Paycheck Protection Program (PPP), which offered loans for small businesses so they could keep workers employed and cover payroll costs.
Reports about suspected COVID-19 related fraud can be made through the Department of Justice’s National Center for Disaster Fraud Hotline or via its online complaint form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
