William Chadwick, a 63-year-old resident of Akron, Colorado, has been sentenced to 15 months in federal prison followed by one year of supervised release after pleading guilty to money laundering. He was also ordered to pay $228,284.09 in restitution.
Court documents show that between May 2020 and August 2022, Chadwick laundered proceeds from various federal COVID-19 relief programs. These included Unemployment Insurance benefits, Emergency Rental Assistance funds, Paycheck Protection Program (PPP) loan proceeds, and other fraudulent sources. The funds were laundered on behalf of a woman he met online through multiple financial transactions such as ATM withdrawals and cryptocurrency exchanges. In total, approximately $228,284.09 was involved.
“Laundering money which was stolen from the federal government is a crime against every hard-working, tax-paying citizen of the United States,” said United States Attorney Peter McNeilly. “Our office is committed to prosecuting those who look to prosper off fraud against the government.”
Quentin Heiden, Special Agent-in-Charge for the Western Region at the U.S. Department of Labor Office of Inspector General added: “Chadwick laundered fraudulently obtained unemployment insurance funds intended for Americans that were struggling during the pandemic. This sentence highlights our commitment to relentlessly investigate fraud in DOL’s unemployment insurance program. We will continue to work with our law enforcement partners to hold accountable bad actors who perpetrate these crimes.”
United States District Judge William J. Martinez presided over the sentencing.
The investigation was conducted by the Department of Homeland Security Office of Inspector General and the Department of Labor Office of Inspector General. Assistant United States Attorney Nicole Cassidy prosecuted the case.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was passed in March 2020 to provide emergency financial assistance during the COVID-19 pandemic. Among its provisions was the PPP program administered by the Small Business Administration (SBA), offering loans designed to help small businesses keep workers employed and cover certain costs; these loans could be forgiven if used for eligible expenses.
Reports about suspected COVID-19-related fraud can be submitted through the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or online via their complaint form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
