Thursday, Aug. 13, 2020 | 11:23 a.m.
A Las Vegas woman has been accused of fraudulently seeking over $1 million in government loans meant to help businesses cover their payrolls during the coronavirus pandemic, according to federal prosecutors.
Karen Chapon, also known as Karen Hannafious, 50, was charged with one count of bank fraud and one count of making false statements to a financial institution, according to the U.S. Attorney’s Office for the District of Nevada.
A criminal complaint alleges that, in support of six fraudulent loan applications, Chapon made false and misleading statements about her companies’ business operations and payroll expenses, according to a news release.
The complaint also alleges Chapon submitted fake and altered documents, including fraudulent federal tax filings, the release says.
The government recovered the majority of nearly $600,000 in Paycheck Protection Program loan proceeds Chapon obtained, including more than $500,000 from the bank account of one of her companies and a Mercedes Benz SUV, federal authorities said.
The program provides forgivable loans to businesses to cover payroll and some other basic business expenses.
