Two employees with the Internal Revenue Service pleaded guilty to unlawfully receiving thousands of dollars for filing separate, fraudulent Small Business Administration loan applications.
On May 7, 2020, and July 6, 2020, respectively, Tina White, 36, of Bellport, and Shawna Williams, 45, of Centereach, each filed COVID-19 Economic Injury Disaster Loan applications with the Small Business Administration in which they each claimed to be business owners in need of financial assistance due to the economic impact of the COVID-19 pandemic.
White claimed to be the chief operating officer of an agricultural business, and Williams claimed to be the chief operating officer of a medical services business. However, neither business existed. White received $6,000 and Williams received $4,000 as initial cash advancements while their respective loan applications were being processed. Both loan applications were ultimately denied, but White and Williams never returned the money they unlawfully received.
On December 21, 2023, White pleaded guilty before Acting County Court Judge James McDonaugh, to petit larceny, a Class A misdemeanor. White paid restitution in the amount of $6,000, and was sentenced on December 21, 2023 to a conditional discharge.
On February 23, 2024, Williams pleaded guilty before McDonaugh to falsifying business records in the second degree and petit larceny, both Class A misdemeanors. She paid restitution in the amount of $4,000, and was sentenced on February 23, 2024 to a conditional discharge.
“At a time where people were falling ill to COVID-19 and struggling financially, these two U.S. government employees abused a system designed to assist small businesses in order to line their
own pockets,” said Suffolk County District Attorney Ray Tierney. “I want to thank the United States Treasury Inspector General for Tax Administration for working with my office to investigate and prosecute those who would steal taxpayer funds.”