BOISE, Idaho (CBS2) — U.S. Attorney Josh Hurwit announced today three defendants were sentenced on Tuesday for fraudulently obtaining and misusing Paycheck Protection Program (PPP) loans issued by a Boise financial institution and were guaranteed by the U.S. Small Business Administration under the Coronavirus Aid, Relief and Economic Security (CARES) Act.

The defendants were part of a larger COVID-19 fraud ring.

59-year-old Khadijah X. Chapman from Atlanta was sentenced to three years and 10 months in prison. 42-year-old Daniel C. Labrum from South Jordan, Utah, was sentenced to two years. 58-year-old Eric J. O'Neil from Bethel, Connecticut, was sentenced to two years and three months.

According to court documents and evidence presented at trial, Chapman, Labrum and O'Neil fraudulently obtained PPP loans for fake businesses in 2020 and 2021.

The defendants worked with co-conspirators to falsify information and submit fraudulent documents to financial institutions in Boise and elsewhere to obtain about $3.5 million in relief funding intended for small businesses struggling with COVID-19's economic impact.

Chapman was convicted after a jury trial in November 2023 of bank fraud. Labrum and O'Neil pleaded guilty in 2023 to bank fraud.

ncG1vNJzZmihlJa1sLrEsKpnm5%2BifK%2Bx1qxmpaeTlrlwwMernJ5lo5q7tbHNnJydZZmjeqO7yKycZp6fp3qnvsCum66klaPBrcWMqJmtmZmjtq%2BzjGxsZqWZobmqu81mnaunnWK9sbyMpaaapqM%3D