News Summary
Tiawana Brown, a Charlotte City Council member, has been indicted on federal COVID loan fraud charges alongside her daughters. The family allegedly misused over $124,000 in pandemic relief loans for personal expenses, including extravagant celebrations. Brown claims the allegations are politically motivated as she seeks reelection. The indictment details a conspiracy involving false loan applications, leading to potential significant prison time if convicted.
Charlotte City Council Member Tiawana Brown Indicted on Federal COVID Loan Fraud Charges Alongside Daughters
Charlotte, NC – Tiawana Brown, a 53-year-old member of the Charlotte City Council, has been indicted on federal charges of COVID loan fraud. Along with her two adult daughters, Tijema Brown, 30, and Antionette Rouse, 33, the trio faces allegations of wire fraud conspiracy and wire fraud linked to the misuse of pandemic relief loans.
The indictment claims that Brown and her daughters fraudulently obtained over $124,000 in aid through the Small Business Administration’s (SBA) Economic Injury Disaster Loan (EIDL) program and the Paycheck Protection Program (PPP). Federal prosecutors allege the family spent the loan funds on personal expenses, prominently including around $15,000 spent on Tiawana Brown’s lavish birthday celebration, which featured a rented throne and horse-drawn carriage.
According to Brown, the allegations pertain to actions taken before her election to the City Council and are part of a politically motivated effort to undermine her upcoming reelection campaign. Having won her council seat in 2023 with 60.1% of the vote, Brown currently serves as the representative for District 3 in west Charlotte and is seeking reelection later this year.
Details of the Indictment
The indictment outlines a conspiracy in which the Browns submitted 15 applications for EIDL and PPP loans, incorporating false information and documentation. Among the fraudulent materials were fake tax forms, intended to justify requests for loan forgiveness. Instead of utilizing the funds for legitimate business-related expenses as specified in the applications, the money was diverted to personal bank accounts.
The U.S. Attorney’s office has also highlighted Brown’s use of funds from her nonprofit, Beauty After the Bars, to cover personal costs. This nonprofit, which Brown established, aims to assist women transitioning from incarceration while advocating for racial equity and economic mobility.
Background Information
Tiawana Brown previously served four years in federal prison for felony fraud charges in her 20s. She became the first formerly incarcerated individual to be elected to the Charlotte City Council, marking a significant milestone in the local political landscape. Brown has made a commitment to the residents of District 3 and emphasizes her dedication to serving her community despite the ongoing legal issues.
Following the indictment, a federal district court hearing has been scheduled for Brown and her daughters. If convicted, each wire fraud charge carries a potential maximum sentence of 20 years in prison. Prosecutors have expressed that the alleged fraudulent activities appear to be a calculated scheme rather than a mere misunderstanding, pointing to a pattern of deceit throughout the loan application process.
As the legal proceedings advance, Brown maintains that she is committed to transparency and has paid back a portion of the loan, specifically $20,833, upon learning of the investigation into her finances. Nonetheless, the allegations have raised questions about her integrity and ability to serve effectively in public office.
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HERE Resources
Additional Resources
- Carolina Journal
- Charlotte Observer
- WSOC TV
- Google Search: Tiawana Brown
- Encyclopedia Britannica: Tiawana Brown
Author: HERE Charlotte
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