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Federal prosecutors announced Thursday that Chesterfield resident Sheila C. Bynum-Coleman has pleaded guilty to an extensive fraud scheme targeting multiple COVID-19 relief programs intended to help struggling businesses during the pandemic.
According to court documents, Bynum-Coleman, 54, systematically defrauded government assistance programs between May 2020 and March 2021, obtaining over $225,000 in Paycheck Protection Program (PPP) loans through nine separate applications for eight purported businesses she claimed to operate with her husband, Rashad H. Coleman, 48.
Investigators found that Bynum-Coleman deliberately fabricated and inflated annual sales and revenue figures to maximize the loan amounts her businesses could qualify for under the program. She also submitted falsified income tax documentation to substantiate these fraudulent claims.
In one particularly damning example outlined in court records, Bynum-Coleman submitted portions of what she claimed was a 2020 income tax return to support multiple PPP loan applications. However, prosecutors confirmed that neither she nor her husband actually filed any tax returns for that year. Both have now pleaded guilty to tax filing violations in addition to the fraud charges.
The investigation revealed a pattern of contradictory claims across different government assistance programs. While representing to financial institutions that she was operating multiple businesses to secure PPP loans, Bynum-Coleman simultaneously claimed to the Virginia Employment Commission (VEC) that she was unemployed from March 15, 2020, through February 13, 2021. This false representation allowed her to collect pandemic unemployment benefits during the same period she was receiving business relief funds.
When applying for unemployment assistance, Bynum-Coleman explicitly stated to the VEC that she had neither applied for nor received any PPP funds—a direct contradiction of her actions. Prosecutors also found evidence that she made false statements to the U.S. Small Business Administration to fraudulently obtain funds through the Emergency Injury Disaster Loan (EIDL) Program, further expanding her scheme.
Rather than using the relief funds for their intended purpose of maintaining payroll and legitimate business expenses during the pandemic, court records show Bynum-Coleman diverted the money to personal expenditures. These included payments toward her home mortgage, luxury clothing purchases, credit card bills, and other non-business spending.
In a particularly notable misuse of funds, approximately one week after receiving $62,500 in PPP loans, Bynum-Coleman transferred $10,000 to a bank account named “Friends of Sheila for Delegate,” which supported her political campaign for the Virginia House of Delegates. Bynum-Coleman had previously run as a candidate in the 66th House District, representing parts of Chesterfield County and Colonial Heights, in November 2019.
The case highlights the ongoing efforts by federal authorities to prosecute fraud related to pandemic relief programs. Since the inception of the CARES Act and subsequent relief legislation, the Justice Department has prioritized investigating individuals who exploited these emergency programs intended to assist legitimate businesses and unemployed workers during an unprecedented economic crisis.
The PPP program, administered by the Small Business Administration, was designed to provide forgivable loans to small businesses to help them maintain their workforce during the COVID-19 crisis. Similarly, expanded unemployment benefits and the EIDL program were created to provide critical financial support during widespread economic disruption.
Sentencing details for Bynum-Coleman and her husband have not yet been announced. The couple faces potential penalties for fraud, false statements to government agencies, and tax violations.
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9 Comments
While the details are troubling, I’m glad the authorities were able to uncover this scheme and bring the perpetrators to justice. Ensuring the integrity of COVID-19 relief funds is critical during these challenging times.
You’re right. Proactive enforcement and prosecution of fraud cases sends an important message that this behavior will not be tolerated.
It’s disappointing to see public officials abusing their positions of trust to defraud relief programs. Taxpayer money should be used responsibly to support legitimate businesses, not line the pockets of corrupt individuals.
Absolutely. This type of fraud undermines public confidence in government aid programs when they are needed most. Holding offenders fully accountable is crucial.
This case highlights the need for robust oversight and audit procedures to prevent abuse of pandemic relief programs. Effective safeguards are essential to protect taxpayer resources and direct them to their intended purposes.
Agreed. Strengthening fraud prevention mechanisms upfront could help minimize these types of fraudulent activities in the future.
It’s disheartening to see public officials exploiting emergency relief for personal gain. Misuse of taxpayer funds meant to support struggling businesses erodes public trust. Strict penalties are warranted to deter future abuse.
This is a concerning case of fraud targeting COVID-19 relief programs. Misusing government assistance intended to help struggling businesses is a serious offense. I hope the sentences handed down reflect the gravity of the crimes committed.
Agreed. Exploiting these programs for personal gain at the expense of those truly in need is unacceptable. Strict penalties are warranted to deter future abuse.