Louisiana Woman Pleads Guilty to CARES Act Fraud

NEW ORLEANS — Chelsey Powell, a 34-year-old resident of Tangipahoa Parish, Louisiana, pleaded guilty on April 29, 2026, to making false statements related to the Coronavirus Aid, Relief, and Economic Security Act, known as the CARES Act. The plea occurred before U.S. District Judge Lance M.

Africk in the Eastern District of Louisiana, as detailed in a U.S. Department of Justice press release announced by U.S. Attorney David I. Courcelle.

The CARES Act, enacted in March 2020, distributed over $2 trillion in economic relief to individuals, businesses, and state governments affected by the COVID-19 pandemic, according to the statute's text and Treasury Department records. Powell's fraud involved false claims tied to this program, impacting funds intended for legitimate recipients such as unemployed workers and small businesses.

The act supported approximately 160 million economic impact payments and provided loans to more than 5 million businesses through the Paycheck Protection Program, per Treasury data on the program's scope. In Louisiana alone, the CARES Act allocated $1.8 billion for state relief and facilitated over 100,000 small business loans, based on state and federal disbursement reports.

Prior to the plea, Powell faced charges for submitting inaccurate information to secure CARES Act benefits, a status shifted by her guilty admission on April 29, 2026. The new state establishes her culpability under federal false statements statutes, with sentencing scheduled by Judge Africk at a later date not specified in the release.

This change eliminates the need for a trial and moves the case directly to the penalty phase, effective immediately following the plea entry.

The guilty plea triggers a sentencing hearing where Powell faces up to five years in prison and fines up to $250,000, per the penalties outlined in 18 U.S.C. § 1001 for false statements to the government. It also activates restitution requirements, compelling Powell to repay any fraudulently obtained funds, which the court will determine based on evidence presented.

Federal prosecutors must now prepare sentencing recommendations, while the U.S. Probation Office conducts a presentence investigation report due within 90 days, per standard federal court procedures. This development contributes to the Department of Justice's COVID-19 Fraud Enforcement Task Force, established in May 2021, which has led to over 3,000 charges nationwide involving more than $1.4 billion in alleged losses, according to task force updates.

The CARES Act fraud enforcement began ramping up in 2021 after initial disbursements revealed widespread abuse, with the Justice Department announcing its task force that year to coordinate investigations. This case marks one of at least 100 guilty pleas in the Eastern District of Louisiana related to pandemic relief fraud since 2022, based on district court records.