Charlotte woman charged in COVID-19 loan fraud scheme

CHARLOTTE — A Charlotte woman accused of submitting hundreds of thousands of dollars in fraudulent COVID-19 relief loan applications was indicted by a grand jury last week, according to the U.S. Attorney’s Office for the Western District of North Carolina.

Nkhenge Shropshire, 48, was charged with wire fraud conspiracy for trying to get more than $300,000 in relief funds using fake information, the indictment said.

Over two months in 2020, Shropshire and her co-conspirators allegedly submitted at least 10 fraudulent Economic Injury Disaster Loans (EIDL) applications to the U.S. Small Business Administration (SBA), according to the indictment.

EIDL benefits were made available to business owners adversely impacted by the pandemic through the expanded Coronavirus Aid, Relief, and Economic Security (CARES) Act. To receive a loan from the program, business owners were required to submit revenue and employment information.

The indictment alleges the applications submitted by Shropshire and her accomplices were for fictitious businesses and included false information and supporting documents.

They attempted to obtain at least $331,072 in relief funds, according to the indictment. At least $45,000 was paid out by SBA to Shropshire and her co-conspirators as a result of the scheme.

Shropshire allegedly spent the fraudulent proceeds on personal expenses, including hotel stays, shopping sprees, and cars.

Shropshire has a previous conviction for filing false tax returns and lying on a loan application in 2014, according to court records. She received 33 months in prison and five years of supervised release.

Officials said she was still on supervised release when she allegedly committed the COVID-19 loan fraud.

Shropshire is in federal custody until her initial appearance in court in Charlotte, the U.S. attorney said.

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