BOISE, Idaho — Three people were sentenced Tuesday, Feb. 7, for fraudulently abusing Paycheck Protection Program (PPP) loans issued to select businesses during to the coronavirus pandemic.
U.S. Attorney's Office said documents and evidence presented at trial found the three out-of-state criminals fraudulently obtained PPP loans for fake businesses in 2020 and 2021.
Khadijah Chapman, Daniel Labrum and Eric O'Neil were convicted of bank fraud and sentenced to a collective 97 months in prison. The three ultimately obtained approximately $3.5 million in funds intended for small businesses that were financially struggling during the COVID-19.
U.S. Attorney Josh Hurwit said that the defendants' crimes were part of a larger COVID-19 fraud ring, working with other criminals to falsify information and submit fake documents to financial institutions in Boise.
The PPP loans were issued by a Boise financial institution and guaranteed by the U.S. Small Business Administration under the Coronavirus Aid, Relief and Economic Security (CARES) Act.
- Khadijah X. Chapman, 59, of Atlanta, was sentenced to three years and 10 months in prison.
- Daniel C. Labrum, 42, of South Jordan, Utah, was sentenced to two years in prison.
- Eric J. O'Neil, 58, of Bethel, Connecticut, was sentenced to two years and three months in prison.
Chapman was convicted after a jury trial in November 2023, while Labrum and O'Neil pleaded guilty.
Watch more Local News:
See the latest news from around the Treasure Valley and the Gem State in our YouTube playlist:
HERE ARE MORE WAYS TO GET NEWS FROM KTVB:
Download the KTVB News Mobile App
Apple iOS: Click here to download
Google Play: Click here to download
Watch news reports for FREE on YouTube: KTVB YouTube channel
Stream Live for FREE on ROKU: Add the channel from the ROKU store or by searching 'KTVB'.
Stream Live for FREE on FIRE TV: Search ‘KTVB’ and click ‘Get’ to download.