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Shalewa Barbara Kasali, A Nigerian Lady, Arrested For $2 Million COVID-19 Loan Fraud In Texas

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A Nigerian lady identified as Shalewa Barbara Kasali has been arrested in Texas, United States, for a COVID-19 loan related fraud.

According to reports, Shalewa Kasali received nearly$2 million in Paycheck Protection Program loans amid the ongoing coronavirus pandemic was arrested on Tuesday, September 15, 2020, by federal authorities following fraud allegations.

Shalewa Barbara Kasali, 22, of Houston, was charged with making false statements to a financial institution, wire fraud, bank fraud and engaging in unlawful monetary transactions. She is expected to make her initial appearance before U.S. Magistrate Judge Christina Bryan in Houston at 2:00 p.m. CDT on Wednesday, Sept. 16.

The Small Business Administration (SBA) guarantees PPP loans under the Coronavirus Aid, Relief and Economic Security (CARES) Act.

The criminal complaint, unsealed on Tuesday alleged that Shalewa Barbara Kasali submitted at least two fraudulent PPP loan applications – one on behalf of an entity called Lola’s Level and the other in the name of Charm Hair Extensions.

Shalewa Barbara Kasali allegedly received more than $1.9 million in PPP loan funds following the approval of Lola’s Level application. The charges allege that after receiving the funds, Kasali transferred the money into four additional bank accounts. Authorities were later able to seize the funds, according to the charges.

The loan applications allegedly asserted both Charm Hair Extensions and Lola’s Level had numerous employees and significant payroll expenses. According to the charges, however, neither entity has employees nor pays wages consistent with the amounts claimed in the loan applications.

The CARES Act is a federal law enacted March 29. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief the CARES Act provides is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.

The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.

A federal criminal complaint is merely an accusation. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

The Federal Housing Finance Agency Office of the Inspector General (OIG), SBA-OIG and U.S. Postal Inspection Service – Houston Division conducted the investigation. Trial Attorneys Timothy A. Duree of the Criminal Division’s Fraud Section and Matthew Grisier of the Criminal Division’s Money Laundering and Asset Recovery Section are prosecuting the case with the assistance of Assistant U.S. Attorney James McAlister for the Southern District of Texas.

 

The Street Journal/Justice.gov

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3 Comments

  1. What the hell is wrong with you bloggers?!! Did you do your due diligence or research before posting this CRAP??! The person‘s picture is WRONG!! That is my cousin who is a well behaved upright citizen and you are trying to tarnish her image?! The real Lola Kasali has been apprehended and this my cousin lives in New Jessy not Texas!!! The lady in the picture up there is of good character and HAS NEVER and WILL NEVER be associated with the nonsense you just posted. If you don’t do your due diligence to either reach out to my cousin in the picture above or take down this post until you are extremely sure of the picture, I can promise you that we would sue you! I would come after you with everything I have got!!! #RealStoryWrongPicture #FakePicture

  2. The picture that you have attached to this article is not the right individual. The picture you have is of a woman who is older than 22. Please take this picture down and find the right individual because yes they share the same name but taking a picture off of someone’s Facebook is not the right thing to do when you are not 100% sure that she is the right person. This is defamation of character!!!!!

  3. You certainly have not done your home work. The photo used is not that of the culprit. The person whose photos you have used is my Godchild and she is older than 22. She is a respectable, diligent and highly responsible person. Accusing someone of what they have not done can leave you liable to prosecution your blog is malicious, libellous and slanderous. Do your home work. Take her photo down and do the right thing.

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