Tangipahoa Woman Guilty of Cares Act Fraud

NEW ORLEANS - CHELSEY POWELL ("POWELL"), age 34, of Tangipahoa Parish, LA, pleaded guilty on April 29, 2026 before United States District Judge Lance M. Africk to making false statements related to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), announced U.S. Attorney David I. Courcelle.

On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division. The core mission of the Fraud Division is to zealously investigate and prosecute those who steal or fraudulently misuse taxpayer dollars. Department of Justice efforts to combat fraud support 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.

According to court records, POWELL made false statements to the Small Business Administration (SBA) for the purpose of fraudulently obtaining a pandemic-related relief Paycheck Protection Program (PPP) loan funded by the federal government, in the amount of approximately $19,950.00. She also applied for two other PPP loans that were based upon false information. In total, POWELL agreed to repay the SBA $36,123.52 as restitution for the losses to the government.

POWELL is to be sentenced on August 12, 2026. At that time, she faces up to five years in prison, up to $250,000 in fines, and up to three years of supervised release for the false statements to the SBA. There is also a $100 mandatory special assessment fee due after conviction.

U.S. Attorney Courcelle praised the work of the U.S. Department of Veterans Affairs Office of Inspector General (a member of the Pandemic Response Accountability Committee) and the United States Secret Service in investigating this matter. Assistant U.S. Attorney Edward J. Rivera of the Financial Crimes Unit is in charge of the prosecution.

The Fraud Section leads the Criminal Division's prosecution of fraud schemes that exploit the Paycheck Protection Program (PPP). Since the inception of the CARES Act, the Fraud Section has prosecuted over 150 defendants in more than 95 criminal cases and has seized over $75 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at Justice.gov/OPA/pr/justice-department-takes-action-against-covid-19-fraud.

For more information on the Department of Justice's response to the pandemic, please visit https://www.justice.gov/coronavirus. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice's National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

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