Former Baltimore Council Candidate Convicted for $1.7 Million COVID-19 Loan Scheme

A former candidate for Baltimore City Council has been convicted of bank fraud and making false statements in a scheme to fraudulently obtain nearly $1.7 million in Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) loans. Nichelle Henson, 38, was found guilty after a week-long federal trial in Maryland. She used the funds for personal expenses, including cosmetic surgery, home renovations, and new business ventures, such as a cryptocurrency project and a used car dealership that never opened.

Evidence presented in court showed that Henson had incorporated multiple businesses, including Crowns Construction, LLC; Nichelle Henson Campaign, LLC; and Your Friendly Tax Preparation Services, LLC. Between 2020 and 2021, she submitted six fraudulent EIDL applications to the Small Business Administration (SBA), inflating revenue figures and falsely claiming employees for businesses that were not operational. She received $18,000 in EIDL funds as a result. Additionally, she submitted 12 fraudulent PPP loan applications to three lenders, providing falsified tax documents and payroll information to secure funds.

Henson’s fraudulent PPP applications led to nearly $1 million in loan disbursements. One application was for “Nichelle Henson Campaign,” an entity created for her political campaign, despite her having withdrawn from the race months earlier. Another was for “Crowns Construction,” a non-existent business using a vacant lot as its address. In support of the application, she altered a neighbor’s utility bill to appear as her own. She later submitted six more fraudulent PPP loan applications to M&T Bank, receiving an additional $676,250 before the bank froze her accounts and alerted law enforcement.

Henson misused the pandemic relief funds in violation of program guidelines. She attempted to launch a car dealership in Dundalk, Maryland, which never opened, and created a cryptocurrency called Subina Coin. Other funds were spent on personal housing expenses and business ventures unrelated to the intended use of the loans. In total, she fraudulently obtained $1,694,451.

She faces up to 30 years in federal prison for each count of bank fraud and up to five years for each count of making false statements. Sentencing is scheduled for August 5, 2025, before U.S. District Judge Matthew J. Maddox. Henson will also be required to pay restitution to the SBA and financial institutions affected by her fraudulent activity.

The case was investigated by the FBI and the Special Inspector General for Pandemic Recovery as part of the District of Maryland Strike Force, a federal initiative targeting large-scale pandemic relief fraud. The strike force focuses on prosecuting criminal organizations and individuals involved in COVID-19 relief fraud schemes. Authorities continue to encourage the public to report pandemic-related fraud through the Department of Justice’s National Center for Disaster Fraud Hotline or online complaint form.

Article by multiple RFHC contributors, based upon information from the U.S. Attorney’s Office, District of Maryland.

---