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Woman indicted for stealing COVID-19 relief funds to pay off personal debts and take trips

The woman claimed to own a business that employed 10 people and generated $7.5M in 2019. It was later discovered that business did not exist.
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WASHINGTON — A woman who claimed to own an agriculture business based out of her D.C. apartment has been indicted for stealing COVID-19 personal relief funds after it was discovered that the business was fake.

On June 12, Lori Isabell Morgan, 35, of Greenbelt, Maryland was arrested on an indictment charging her with defrauding the U.S. government of nearly $150,000 in Economic Injury Disaster Loan (EIDL) funds. These funds were meant to provide relief to businesses struggling to stay afloat as a result of the pandemic. The indictment carries six counts of wire fraud.

Investigators say Morgan allegedly submitted an EIDL application to the Small Business Administration, in which she claimed to own an agriculture business based out of her D.C. apartment. She alleged to employ 10 people and to have generated $7.5M in 2019. It was later discovered that the business did not exist. 

On July 8, 2020, the SBA deposited $149,900 into Morgan's bank account. Investigators say she then used the money to pay off her debts, pay for auto repair, restaurant tabs, shopping purchases, and trips to Atlantic City and Las Vegas. By December of that year, five months later, Morgan's account balance was down to $829.

Morgan initially appeared in court on June 12.

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