NEWPORT NEWS, Va. – A Stockbridge, Georgia, woman pleaded guilty yesterday to conspiring with others to submit millions of dollars in fraudulent disaster-related loan applications in connection with the COVID-19 pandemic.
According to court documents, Nikki Mitchum, 44, participated in a conspiracy to obtain disaster-related loan benefits in the form of Small Business Administration (SBA) sponsored Economic Injury Disaster loans (EIDL) and Paycheck Protection Program (PPP) 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. Nikki Mitchum and her co-conspirators, including Malik Mitchum, 26, and Jenna Mitchum, 25, of Hampton, submitted fraudulent claims for government benefits in the name of businesses that they falsely represented were struggling during the COVID-19 pandemic.
Between March 2020 and May 2021, 12 fraudulent applications for pandemic-related loan benefits were submitted using Nikki Mitchum’s information that contained false statements and misrepresentations about their income, employment, and claimed business entities. Nikki Mitchum is further linked to four other fraudulent loan applications by the IP address used to submit the applications. Finally, Nikki Mitchum is connected with 17 fraudulent loan applications submitted by other co-conspirators who paid kickbacks in an approximate amount of $204,000 to the companies owned and operated by...
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