Cabarrus County, North Carolina, January 10, 2026
Tatiana Vazquez and Marquise Highsmith admitted to defrauding federal COVID-19 relief programs, resulting in the theft of more than $1.4 million. Pleading guilty to wire fraud conspiracy and conspiracy to defraud the government, they exploited critical assistance initiatives intended for struggling businesses. Their fraudulent activities included submitting falsified applications for Paycheck Protection Program loans, Economic Injury Disaster Loans, and tax credits. With sentencing pending, the couple faces significant prison time and restitution requirements.
CHARLOTTE, N.C. – A couple formerly residing in Cabarrus County has pleaded guilty to federal charges for their involvement in schemes to defraud over $1 million from various federal COVID-19 relief programs. Tatiana Vazquez, 39, and Marquise Highsmith, 41, admitted to their roles in a significant fraud operation that targeted critical pandemic assistance initiatives designed to support struggling businesses and individuals Nationwide.
Guilty Pleas and Charges
Tatiana Vazquez entered her guilty plea on January 9, 2026, while Marquise Highsmith pleaded guilty on October 7, 2025. Both individuals pleaded guilty to charges of wire fraud conspiracy affecting a financial institution and conspiracy to defraud the government. The charges stem from their efforts to illegally obtain funds from the Paycheck Protection Program (PPP), the Economic Injury Disaster Loan (EIDL) program, the Employee Retention Credit (ERC) program, and the Sick Leave and Family Leave Credit (SFLC) program.
Details of the Fraud Scheme
According to court documents, the fraudulent activities unfolded in multiple phases. From May 2020 to January 2022, Vazquez, Highsmith, and their co-conspirators submitted numerous falsified applications to financial institutions and the Small Business Administration (SBA) to secure PPP and EIDL loans. These applications often contained fabricated details regarding the businesses’ tax filings, employee counts, and other key financial information. As a direct result of this phase of the scheme, Vazquez and Highsmith personally acquired more than $450,000 in COVID-19 relief funds. Further misrepresentations were included in subsequent loan forgiveness applications, leading to the improper forgiveness of some debts.
The scheme evolved between July 2022 and February 2023, as Vazquez and Highsmith shifted their focus to programs administered by the Internal Revenue Service (IRS), specifically the Employee Retention Credit (ERC) and the Sick Leave and Family Leave Credit (SFLC) programs. These programs were established to offer federal tax credits for employment taxes or wages to eligible businesses. The couple and their associates defrauded the IRS by preparing and submitting fraudulent forms that falsely claimed millions of dollars in tax credits and corresponding refunds. This resulted in them improperly receiving an additional $1 million in COVID-19 related tax refunds, bringing the total amount of fraudulently obtained funds to more than $1.4 million.
Both Vazquez and Highsmith are currently released on bond, with their sentencing dates yet to be determined. For such federal crimes, individuals typically face potential imprisonment ranging from 2 to 30 years, with wire fraud alone carrying a maximum sentence of up to 20 years. Convicted defendants are also frequently ordered to pay restitution and forfeit illegally obtained assets.
Nationwide Scope of COVID-19 Relief Fraud
The case of Vazquez and Highsmith highlights a broader issue of widespread fraud that plagued COVID-19 relief programs Nationwide. These programs, including PPP and EIDL, were established under the CARES Act to provide a vital financial lifeline to small businesses and non-profit organizations severely impacted by the pandemic. However, the rapid disbursement of funds and, in some instances, weakened internal controls, created opportunities for fraudsters to exploit the system.
Estimates suggest that more than $200 billion in COVID-19 EIDL and PPP loans alone were potentially fraudulent, accounting for approximately 17 percent of all funds disbursed through these programs Nationwide. The Department of Justice (DOJ) has made significant efforts to combat this fraud, with more than 3,500 defendants criminally charged Nationwide as of April 2024. Furthermore, over $1.4 billion in fraudulently obtained funds have been seized by the DOJ Nationwide.
Federal authorities continue to investigate and prosecute cases of COVID-19 relief fraud, often through interagency task forces such as the COVID-19 Fraud Enforcement Task Force and the Pandemic Response Accountability Committee (PRAC). These efforts have resulted in thousands of convictions Nationwide, with sentences typically including prison time, usually between one and five years, and orders to pay back the stolen funds through restitution.
The continued pursuit of those who defrauded these essential programs underscores the government’s commitment to holding accountable individuals who exploited a national crisis for personal gain. Agencies are actively implementing lessons learned from the pandemic to enhance anti-fraud strategies for future emergencies and regular operations.
Frequently Asked Questions
-
What did the Cabarrus County couple plead guilty to?
Tatiana Vazquez and Marquise Highsmith pleaded guilty to federal charges of wire fraud conspiracy affecting a financial institution and conspiracy to defraud the government. -
How much money did they steal?
The couple admitted to defrauding federal pandemic relief programs of more than $1 million, with the total amount of fraudulently obtained funds reaching over $1.4 million when combining funds from all targeted programs. -
Which COVID-19 relief programs were targeted?
The couple defrauded the Paycheck Protection Program (PPP), the Economic Injury Disaster Loan (EIDL) program, the Employee Retention Credit (ERC) program, and the Sick Leave and Family Leave Credit (SFLC) program. -
How did they commit the fraud?
They submitted multiple fraudulent applications for purported businesses they controlled, providing false information on tax filings, employee numbers, and fabricated financial details. They also filed fraudulent loan forgiveness applications. -
Are they currently in custody?
No, both Tatiana Vazquez and Marquise Highsmith are currently released on bond. -
What are the potential penalties for COVID-19 relief fraud Nationwide?
For such federal crimes, individuals typically face potential imprisonment ranging from 2 to 30 years, with wire fraud alone carrying a maximum sentence of up to 20 years. Convicted defendants are also frequently ordered to pay restitution and forfeit illegally obtained assets. -
What is the estimated scale of COVID-19 relief fund fraud Nationwide?
Estimates suggest that more than $200 billion in COVID-19 EIDL and PPP loans alone were potentially fraudulent Nationwide, accounting for approximately 17 percent of all funds disbursed through these programs.
Key Features of the Cabarrus County COVID Relief Fraud Case
| Feature | Detail | Geographic Scope |
|---|---|---|
| Individuals Charged | Tatiana Vazquez, 39, and Marquise Highsmith, 41 | Local |
| Location of Incident | Formerly resided in Cabarrus County, North Carolina | Local |
| Total Funds Defrauded | More than $1.4 million | Local |
| Programs Targeted | Paycheck Protection Program (PPP), Economic Injury Disaster Loan (EIDL) program, Employee Retention Credit (ERC) program, Sick Leave and Family Leave Credit (SFLC) program | Nationwide Programs, Local Fraud |
| Charges | Wire fraud conspiracy affecting a financial institution, conspiracy to defraud the government | Federal |
| Status | Pled guilty, released on bond, sentencing pending | Local |
| Method of Fraud | Submitted fraudulent applications with fabricated business details and tax information; filed false loan forgiveness applications | Local |
| Estimated Nationwide Fraud in PPP/EIDL | More than $200 billion potentially fraudulent | Nationwide |
| Nationwide Criminal Charges | Over 3,500 defendants criminally charged Nationwide | Nationwide |
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