Anchorage businesswoman sentenced to prison for fraudulently obtaining, misusing nearly $1M in COVID-19 relief funds for personal gain

ANCHORAGE, Alaska - An Anchorage businesswoman was sentenced today to 3.8 years in prison for lying on federal loan applications and stealing identities to fraudulently obtain nearly $1 million in COVID-19 relief funds.

According to court documents, Cheryl Labrie, 39, was the owner of AKBS LLC, doing business as Liberty Tax Service and Alaska's Bookkeeping Solutions, providing bookkeeping and tax preparation services in Alaska, including for several marijuana businesses. Over the course of more than a year, Labrie applied for and obtained multiple emergency relief loans and advances, totaling nearly $1 million.

During the COVID-19 pandemic, the Small Business Administration (SBA) provided funds to qualifying small businesses to offset the impacts of the pandemic. The two SBA programs relevant to this case are the Economic Injury Disaster Loan (EIDL) and the Paycheck Protection Program (PPP). The funding for these programs was limited and when it ran out there were thousands of applications from small businesses pending that were never funded.

Between April 2020 and November 2021, Labrie falsified applications and submitted fraudulent IRS documents seeking four loans and two forgiveness applications from the EIDL and PPP programs. She obtained over $970,000 in federal tax-payer dollars through these applications. Labrie falsely certified on her applications that she had never been convicted or pleaded guilty to a crime and had never been placed on pretrial diversion or probation. Labrie had two prior convictions and was on probation when she filed the applications.

She also falsely stated that the funds would be used for business expenses, like payroll relief for AKBS LLC. Instead, Labrie used the fraudulently obtained federal funds for her personal use including purchasing a parcel of land on the hillside and making a downpayment for a personal residence. Labrie also used the relief funds to pay off her prior criminal restitution and other unauthorized debts. To disguise her misuse of federal funds, Labrie co-mingled the funds with cash from her marijuana clients, structured transactions through multiple accounts, and utilized money orders and cashier checks before spending the funds for personal purposes.

Labrie also used the personal identifying information of seven marijuana business employees, without their permission, to falsely claim them as employees of AKBS LLC to obtain funds her business was not eligible to receive.

On Jan. 18, 2024, Labrie was indicted by a federal grand jury on 12 criminal counts. On March 20, 2025, and Feb. 18, 2026, a federal grand jury in Alaska returned superseding indictments against LaBrie, ultimately charging her with seven counts of aggravated identity theft, six counts of wire fraud, and two counts of money laundering. On April 13, 2026, Labrie pleaded guilty to one count of wire fraud and one count of aggravated identity theft.

During sentencing, in addition to incarceration, the Court also ordered Labrie to serve three years on supervised release upon completion of her prison sentence. The total loss amount in this case was more than $970,000, and the Court ordered Labrie to pay the total loss amount in full through restitution.

"Ms. Labrie orchestrated an elaborate web of deceit to steal nearly $1 million from the American taxpayers, funds that could have benefited struggling businesses during a national emergency," said U.S. Attorney Michael J. Heyman for the District of Alaska. "Tackling fraud against the American purse is a priority for my office and this administration. We must protect the systems set in place to assist law abiding U.S. citizens in times of need."

"Lying to gain access to SBA's pandemic response programs will be met with justice," said SBA OIG's Acting Special Agent in Charge, Tim Larson. "OIG will aggressively pursue evidence of fraud against SBA's programs aimed at assisting the nation's small businesses struggling with the pandemic challenges. I want to thank the U.S. Attorney's Office, and our law enforcement partners for their dedication and pursuit of justice."

The investigation was led by the Small Business Administration Office of Inspector General, with significant assistance from the U.S. Treasury Inspector General for Tax Administration, FBI Anchorage Field Office and IRS Criminal Investigation Anchorage Field Office.

Assistant U.S. Attorneys Andrea Steward and Mac Caille Petursson prosecuted the case.

On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division ("Fraud Division"). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department's work to combat fraud supports President Trump's Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.

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