Nichelle Henson, a former Baltimore City Council candidate, has been sentenced to four years in federal prison for bank fraud and making false statements related to a $1.7 million scheme involving fraudulent COVID-19 relief loans. U.S. District Judge Matthew J. Maddox issued the sentence after evidence showed that Henson filed fraudulent Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) loan applications in the names of several businesses she incorporated in Maryland.
According to the U.S. Attorney for the District of Maryland, Kelly O. Hayes, and Special Agent in Charge Jimmy Paul of the FBI’s Baltimore Field Office, Henson created multiple entities such as Crowns Construction, LLC; Nichelle Henson Campaign, LLC; One Stop for Services, LLC; Your Friendly Tax Preparation Services, LLC; Women Entrepreneurs Can Succeed, LLC; and Peace of Mind Services, Inc. She then opened bank accounts and obtained tax identification numbers for these businesses.
In 2020 and 2021, Henson submitted six EIDL applications with false information about gross receipts, costs of goods sold, and employee counts while none of her businesses were operating or had employees at the time. These actions led to her receiving $18,000 from the Small Business Administration.
Between April 30 and June 29, 2020, Henson also filed six PPP loan applications for her various businesses—including one for her campaign entity despite having withdrawn her candidacy months earlier—ultimately obtaining $998,590 through these applications. On January 19, 2021, she submitted another set of six fraudulent PPP loan applications to M&T Bank with misrepresentations regarding business operations and payrolls.
Overall, authorities determined that Henson secured approximately $1.69 million through this scheme. Investigators found that she used funds on unauthorized expenses under PPP rules such as cosmetic surgery, home renovations for herself and a family member, rent payments for personal use and new ventures—including a used-car dealership that never opened—and efforts to create a cryptocurrency called Subina Coin connected to an entity named “Adageyhdi Indian Nation.”
This prosecution is part of the District of Maryland COVID-19 Strike Force’s ongoing work against pandemic-related fraud schemes nationwide by criminal organizations or transnational actors targeting programs established under the CARES Act designed to support Americans during the economic impact caused by COVID-19.
More information about government efforts addressing pandemic response can be found at https://www.justice.gov/coronavirus. Individuals with information about attempted COVID-19-related fraud are encouraged to contact the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or submit tips via https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
U.S. Attorney Hayes thanked both law enforcement partners involved in investigating this case as well as Assistant U.S. Attorney Joseph Wenner who prosecuted it and Paralegal Specialist Julie Jarman for assistance.
Additional resources on reporting fraud or learning more about priorities from the Maryland U.S. Attorney’s Office are available at www.justice.gov/usao-md and https://www.justice.gov/usao-md/report-fraud.
