Amid the DOJ’s rollout of a new fraud division, fresh arrests tied to pandemic relief fraud are already making headlines. The latest cases involve a Marshall County tax assessor in Mississippi and a Chicago police sergeant accused in separate PPP-related investigations.
On May 1, it was announced that Marshall County tax assessor Barbara Belfoure was arrested over allegations tied to COVID-19 relief fraud. Federal prosecutors accuse her of submitting fraudulent PPP and Economic Injury Disaster Loan applications to the United States Small Business Administration. Court records show she was later released on a $10,000 unsecured bond.
Attorney John Keith Perry Jr. defended Belfoure, stressing that an indictment is not a conviction and insisting she did nothing wrong. He said Belfoure used the nearly $21,000 PPP loan to keep her catering business afloat during the pandemic and denied allegations that she lied on the application. Her federal trial is currently scheduled for June 22.
Just days later, Chicago police sergeant Brandi Wright was accused of fraudulently obtaining more than $40,000 in COVID-19 relief funds through a bakery business prosecutors say never existed. Federal officials announced wire fraud charges against the 44-year-old on May 5. Wright, who has reportedly been with the Chicago Police Department for nearly 20 years, faces up to 20 years in prison if convicted.
Federal prosecutors allege Brandi Wright submitted false PPP loan applications in 2021, claiming she owned a retail bakery that earned nearly $100,000 in revenue. Authorities say the business never actually existed and accuse Wright of using the more than $41,000 in relief funds for personal expenses, including credit card payments, shopping, and cash withdrawals.
The arrests come as the United States Department of Justice launches a new West Coast Health Care Fraud Strike Force aimed at cracking down on fraud in California, Arizona, and Nevada. Assistant Attorney General Colin McDonald said the initiative will add more federal prosecutors and partner with agencies, including the FBI and HHS Inspector General, to pursue fraud cases nationwide. He also warned that anyone stealing from taxpayers could end up with “free housing in a federal prison.”
