Former Charlotte City councilwoman Tiawana Brown sentenced in fraud case

DJ Beal,

CHARLOTTE, N.C. (News Release) –  Former Charlotte City councilwoman Tiawana Brown and her daughters have been sentenced in the COVID-19 funds fraud case on September 22nd.

Tiawana Brown and her daughters were sentenced after they pleaded guilty to wire fraud conspiracy for fraudulently obtaining more than $146,665 in COVID relief funds.

Tiawana Brown, 55, of Charlotte, was sentenced to 10 months in prison, followed by two years of supervised release, and agreed to forfeit $22,500 in fraud proceeds.

Tijema Brown, 32, and Antionette Rouse, 34, also of Charlotte, were each sentenced to two years of probation and four months of home detention, respectively. Tijema Brown and Antionette Rouse each agreed to forfeit $51,666 in fraud proceeds.

The defendants were also ordered to pay restitution to the Small Business Administration (SBA) in the amount of $137,280.09. To date, Tiawana Brown has paid $20,833 in restitution.

According to court records, between April 2020 and September 2021, the defendants conspired to defraud the SBA by submitting fraudulent loan applications for COVID pandemic relief funds
through the Economic Injury Disaster Loan (EIDL) program and the Paycheck Protection Program (PPP) for their purported businesses. To secure the loans, the defendants submitted
fraudulent PPP and EIDL loan applications that contained false and fraudulent information and fictitious documentation, including a fabricated IRS Schedule C form.

In total, the defendants submitted at least 13 applications for EIDL or PPP funds and fraudulently received at least $146,665 in pandemic relief loans. Instead of using the funds to pay for qualifying expenses as required by the loans, the defendants used the funds on personal expenses, including approximately $15,000 on a personal birthday party for Tiawana Brown.

In handing down the defendants’ sentences, Judge Bell said, “These programs are set up at a time of great desperation for a lot of people,” and noted that, “The public is tired of being ripped
off.”