New Orleans Woman Charged With $1.3 Million COVID Relief Fraud and Tax Evasion

NEW ORLEANS — A federal grand jury in the Eastern District of Louisiana indicted Jasmine A. Johnson on one count of wire fraud, three counts of money laundering, two counts of aggravated identity theft, and three counts of tax evasion, the Justice Department announced June 3.

Johnson stands accused of causing more than $1.3 million in losses to two COVID-19 relief programs. Between April 2020 and July 2021 she allegedly submitted fraudulent Paycheck Protection Program loan applications and Economic Injury Disaster Loan grant applications that contained false information about the number of employees, payroll costs, and business operations of companies she controlled.

The indictment states she used stolen identities of real individuals to support the applications. After the loans and grants were approved and disbursed, Johnson allegedly laundered the proceeds through multiple bank accounts and used the funds to purchase real estate, vehicles, and personal luxury items.

The charges also allege Johnson failed to report the $1.3 million in fraudulent proceeds as taxable income on her federal returns for 2020, 2021, and 2022.

If convicted, Johnson faces a maximum of 20 years in prison on the wire-fraud count, up to 10 years on each money-laundering count, mandatory consecutive two-year sentences on each aggravated-identity-theft count, and up to five years on each tax-evasion count. She must also pay full restitution.

The case forms part of the Justice Department's broader pandemic-fraud enforcement initiative. The indictment cites specific loan application numbers, bank account records, and Internal Revenue Service filings as evidence.

This marks the latest announced charge in Louisiana tied to Paycheck Protection Program and Economic Injury Disaster Loan fraud. The Small Business Administration has reported more than $200 billion in potentially fraudulent disbursements nationwide across the two programs, which together issued roughly 9 million loans and grants during the pandemic.

Federal prosecutors have filed charges against more than 4,000 defendants since 2021 as part of coordinated efforts by the COVID-19 Fraud Enforcement Task Force.

Johnson's initial appearance is scheduled in U.S. District Court in New Orleans.