An Oklahoma City woman who fraudulently accepted COVID-19 relief money has been sentenced to two years in prison, followed by three years of supervised release.
Prosecutors said Madinah Malikah Montgomery, 33, applied for an Economic Injury Disaster Loan from the Small Business Administration in 2020. The loans are intended to help struggling small businesses.
Montgomery applied for a $150,000 loan. Prosecutors said she falsely claimed she owned a salon with 10 employees and gross revenues of $600,000. The SBA approved the loan and deposited $149,900 into Montgomery’s bank account in Enid.
Prosecutors said Montgomery fraudulently applied for three separate EIDL loans and received a total of $300,000.
In March, she was charged with bank fraud. Montgomery pleaded guilty to one charge and admitted receiving $149,000. She used some of the money to pay personal expenses.
At sentencing, U.S. District Judge Stephen P. Friot ordered Montgomery to pay $300,000 in restitution to the United States.
In a separate federal lawsuit, Montgomery faces a charge of possession of fentanyl with intent to distribute. She pleaded not guilty and is awaiting trial.
Montgomery has prior felony convictions, including possession of marijuana with intent to distribute and possession of drug paraphernalia, and grand theft introducing contraband into a penal institution.
This article originally appeared on Oklahoman: OKC woman sentenced to prison and fine for COVID-19 loan fraud
