Federal Judge Sentences Former City Councilwoman and Daughters for COVID-19 Loan Fraud

CHARLOTTE, N.C. – Today, U.S. District Judge Kenneth D. Bell sentenced a former Charlotte City Councilwoman and her two daughters after they pleaded guilty to wire fraud conspiracy for fraudulently obtaining more than $146,665 in COVID relief funds.

Tiawana Brown, 55, of Charlotte, was sentenced to 10 months in prison, followed by two years of supervised release, and agreed to forfeit $22,500 in fraud proceeds. Tijema Brown, 32, and Antionette Rouse, 34, also of Charlotte, were each sentenced to two years of probation and four months of home detention, respectively. Tijema Brown and Antionette Rouse each agreed to forfeit $51,666 in fraud proceeds. The defendants were also ordered to pay restitution to the Small Business Administration (SBA) in the amount of $137,280.09.  To date, Tiawana Brown has paid $20,833 in restitution.

According to court records, between April 2020 and September 2021, the defendants conspired to defraud the SBA by submitting fraudulent loan applications for COVID pandemic relief funds through the Economic Injury Disaster Loan (EIDL) program and the Paycheck Protection Program (PPP) for their purported businesses. To secure the loans, the defendants submitted fraudulent PPP and EIDL loan applications that contained false and fraudulent information and fictitious documentation, including a fabricated IRS Schedule C form. In total, the defendants submitted at least 13 applications for EIDL or PPP funds and fraudulently received at least $146,665 in pandemic relief loans. Instead of using the funds to pay for qualifying expenses as required by the loans, the defendants used the funds on personal expenses, including approximately $15,000 on a personal birthday party for Tiawana Brown.

In handing down the defendants’ sentences, Judge Bell said, “These programs are set up at a time of great desperation for a lot of people,” and noted that, “The public is tired of being ripped off.”

The FBI in Charlotte investigated the case.

Assistant U.S. Attorney Matthew Warren with the U.S. Attorney’s Office in Charlotte prosecuted the case.

On April 7, 2026, the Department of Justice announced the creation of the  National Fraud Enforcement Division . The core mission of the Fraud Division is to zealously investigate and prosecute those who steal or fraudulently misuse taxpayer dollars.  Department of Justice efforts to combat fraud support President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within federal benefit programs.

Source: U.S. Attorney’s Office — Western District of North Carolina — U.S. Department of Justice press release.

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