Two Houston-area residents were apprehended for their alleged roles in a scheme to steal funds intended to help small businesses during the pandemic. Shawn Nicholas Young, 41, of Missouri City, and Trenikia Lashae Banks, 40, of Houston, have been charged with an 11-count indictment, including conspiracy and wire fraud charges related to the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) Program, both of which were parts of the federal government's relief efforts under the CARES Act.
The pair made their initial appearances before U.S. Magistrate Judge Richard Bennett as authorities detailed how they apparently submitted fraudulent applications to acquire loans. According to the U.S. Attorney's Office for the Southern District of Texas, Young and Banks are accused of submitting false tax documents, including faked personal and business tax returns, as part of their operation. The indictment suggests the loans were meant for payroll and business-related expenses but were instead used for personal gain.
The indictment alleges that Young and Banks misappropriated the loan proceeds in various ways, including large cash withdrawals, residential mortgage payments, home improvements, and vehicle purchases. Some of those funds were also said to have flowed back to Young in the form of kickbacks for his role in preparing fraudulent applications for businesses owned by Banks and other individuals.
At stake for Young and Banks is severe legal consequences if convicted: up to 20 years of imprisonment for each count of conspiracy and wire fraud, with fines that could ascend to $250,000. The pair also faces charges of money laundering, which could lead to a decade in prison and additional fines. The investigation was a collaborative effort, drawing on resources from multiple agencies such as Homeland Security Investigations, the Small Business Administration – OIG, and others, with prosecutors Stephanie Bauman and Shirin Hakimzadeh at the helm of the case.
