CHARLOTTE, N.C. – Today, U.S. District Judge Kenneth D. Bell sentenced a former Charlotte City Councilwoman and her two daughters after they pleaded guilty to wire fraud conspiracy for fraudulently obtaining more than $146,665 in COVID relief funds.
Tiawana Brown, 55, of Charlotte, was sentenced to 10 months in prison, followed by two years of supervised release, and agreed to forfeit $22,500 in fraud proceeds. Tijema Brown, 32, and Antionette Rouse, 34, also of Charlotte, were each sentenced to two years of probation and four months of home detention, respectively. Tijema Brown and Antionette Rouse each agreed to forfeit $51,666 in fraud proceeds. The defendants were also ordered to pay restitution to the Small Business Administration (SBA) in the amount of $137,280.09. To date, Tiawana Brown has paid $20,833 in restitution.
According to court records, between April 2020 and…
Investment fraud targets the human desire for financial growth by promising high returns with “low to no risk.”
- Ponzi Schemes: Named after Charles Ponzi, these schemes pay “returns” to earlier investors using the capital brought in by newer investors. There is no actual underlying business; the system collapses when new recruitment slows down.
- Pyramid Schemes: Similar to Ponzi schemes, but participants are usually required to sell a product or service. The primary “profit” comes from the recruitment fees of new members rather than actual product sales.
- Pump and Dump: Fraudsters spread false, positive rumors about a cheap stock (the “pump”) to drive up the price. Once the price peaks, they sell their shares (the “dump”), leaving other investors with worthless stock.