Charlotte Woman Pleads Guilty to Federal Charges for $600,000 COVID-19 Fraud Scheme

CHARLOTTE, N.C. - Kimberly Ann Weatherell, also known as Kimblery Elamina Wu, 45, of Charlotte, pleaded guilty today to wire fraud and money laundering for obtaining more than $600,000 in fraudulent Paycheck Protection Program (PPP) and Economic Injury Relief Disaster Loan (EIDL) Program loans for herself and her business, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina.

"COVID-19 relief programs were meant to help businesses survive an unprecedented crisis, not to become a payday for scammers who lied to get their hands on federal money," said U.S. Attorney Russ Ferguson. "Weatherell used fake documents to obtain more than $600,000 in taxpayer-funded loans. Her guilty plea today is a reminder that these schemes have consequences, and my office will pursue those who exploit federal programs for personal gain."

"Pandemic relief programs provided a vital lifeline to businesses struggling through extraordinary circumstances," said Special Agent in Charge Donald "Trey" Eakins, IRS Criminal Investigation's Charlotte Field Office. "The defendant fraudulently obtained more than $600,000 in taxpayer-funded PPP and EIDL aid by submitting false information, fabricated tax records, and fictitious employment data. This guilty plea underscores our commitment to protecting taxpayer dollars and ensuring accountability for those who abuse federal relief programs."

According to filed plea documents, other court filings, and Weatherell's admissions during the plea hearing, between April 2020 and June 2024, Weatherell executed a scheme to defraud the U.S. Small Business Administration (SBA) and SBA approved-lenders by obtaining fraudulent COVID-19 disaster relief funds for her businesses, including South Charlotte Spa & Salon, Inc., Cool Cave Spa and Salon, Inc., Metro Proponent, Inc., William Z, Inc., and Ifeks Trading. To obtain the relief funds, Weatherell submitted applications and supporting documents that contained false and fraudulent information regarding her business' income, fake employment data, and fabricated tax returns. As a result of the fraudulent loan applications, Weatherell received more than $618,000 in relief funds.

Weatherell was released on bond after her plea hearing. The wire fraud charge carries a maximum prison sentence of 20 years. The maximum statutory penalty for the money laundering offense is 10 years in prison. A sentencing date has not been set.

IRS-CI investigated the case. Assistant U.S. Attorney Caryn Finley is of the U.S. Attorney's Office in Charlotte is in charge of the prosecution.

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.