LAS VEGAS (KTNV) — A Las Vegas woman has been sentenced to two and a half years in prison after pleading guilty to pandemic-era loan fraud.
Court documents state that between April 2020 and July 2020, Karen Chapon, also known as Karen Hannafious, submitted several false statements about her companies' business operations and payroll expenses in order to apply for COVID-19 Paycheck Protection Program loans.
As part of the false documents, federal investigators said Chapon stated she had not been convicted of a felony in the past five years. However, she filed the documents in 2020 and in 2016, she pleaded guilty to felony fraud offenses.
According to the Justice Department, Chapon received $596,931, which she used for her own benefit, including purchasing a Mercedes-Benz SUV.
In August, she pleaded guilty to one count of bank fraud.
On Wednesday, she was sentenced to 30 months in prison to be followed by three years of supervised release. She has also been ordered to pay $589,484.13 in restitution.
