A Georgia attorney has been convicted of defrauding the federal government of more than $7 million in Paycheck Protection Program funds.
Prosecutors said Shelitha Robertson, 62, of Atlanta, Georgia, falsely inflated the number of employees and average monthly payroll for each of her four businesses on PPP loan applications in order to obtain the federal aid, which was aimed at keeping small businesses afloat during the COVID-19 pandemic.
She then used the funds to make extravagant purchases, including a Rolls-Royce, a motorcycle, and a 10-carat diamond ring for $148,000, prosecutors said. She also transferred funds to family members and a co-conspirator.
A federal jury on Tuesday found Robertson guilty of one count of conspiracy to commit wire fraud, three counts of wire fraud, and one count of money laundering, the Department of Justice said in a news release.
Robertson had remained on bond since pleading not guilty to the charges in December last year, but was remanded into custody pending her sentencing on April 11. She faces a maximum of 20 years in prison for each count of conspiracy to commit wire fraud and wire fraud, and a maximum of 10 years for money laundering.
Newsweek has contacted an attorney representing Robertson for comment via email.
Robertson formerly served as an assistant city attorney and as a police officer for the City of Atlanta. She unsuccessfully ran as a Democratic candidate in a 2015 election for a seat in the Georgia House of Representatives, and also ran for a judge seat on the Fulton County Superior Court.
Prosecutors said Robertson schemed with Chandra Norton, her best friend and personal attorney, to receive as much in PPP loans as they could for their businesses. They said Robertson gave $400,000 of the funds she received to Norton and transferred $50,000 to her daughter, who has not been charged.
Both women ran companies that were awarded multimillion-dollar water and sewer infrastructure contracts in the metropolitan Atlanta area, according to local media reports.
Robertson blamed her companies' fraudulent loan applications on Norton. Her lead attorney Craig A. Gillen said Norton was "financially desperate" and an "evil genius" who used Robertson's personal and business information to enrich herself.
But prosecutor Bernita Malloy said Norton had submitted false loan applications at the direction of Robertson. Robertson's defense "defies logic and is absolutely ludicrous," Malloy said.
Federal prosecutor Ariel Glaser said Robertson had threatened to kill Norton when she was arrested and separately threatened another person who filed a police report. Gillen said those comments were made in frustration.
Norton was indicted in August 2020 and pleaded guilty in November that year to a single count of conspiracy to commit wire fraud. As part of a plea deal, she agreed to cooperate with the federal government against Robertson. Norton was disbarred after her guilty plea and is due to be sentenced in January.
The Paycheck Protection Program was authorized as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act in 2020.
"CARES Act loans were designed to help sustain small businesses during the pandemic, not to serve as a source of personal enrichment," U.S. Attorney Ryan K. Buchanan said in a statement when Robertson was indicted.
"We will continue to vigorously investigate and prosecute anyone who fraudulently obtains these critical funds."
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