A couple who formerly resided in Hampton pleaded guilty this week to submitting fraudulent disaster-related loan applications in connection with the COVID-19 pandemic.
According to court documents, Malik Mitchum, 26, and Jenna Mitchum, 25, worked together to obtain disaster-related loan benefits in the form of Small Business Administration-sponsored Economic Injury Disaster loans and Paycheck Protection Program loans.
These programs, initiated and expanded under The Cares Act, are designed to provide support for small businesses for expenses related to the COVID-19 pandemic.
The Mitchums falsely claimed that they were owners of at least five small businesses struggling during the pandemic. In reality, Malik Mitchum was a junior enlisted member of the Air Force and Jenna Mitchum was unemployed.
Between March 2020 and May 2021, the Mitchums submitted at least 19 fraudulent applications for pandemic-related loan benefits that contained false statements and misrepresentations about their income, employment, and claimed business entities. They are further linked to more than 20 other fraudulent loan applications by the IP address used to submit the applications or wire transfers of fraud proceeds. They intended to defraud the government out of more than $5.1 million and caused an actual loss to the United States and participating financial institutions of more than $1.4 million. Malik and Jenna Mitchum spent much of the fraud proceeds they obtained on luxury purchases, like a Rolex watch for $38,743.
Malik and Jenna Mitchum pleaded guilty to conspiracy to commit wire fraud affecting a financial institution. They both face a maximum penalty of 30 years in prison. Malik and Jenna Mitchum are scheduled to be sentenced on July 29.
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