Former Baltimore City Council Candidate Sentenced for Bank Fraud and False Statements in Connection With $1.7 Million Fraud Scheme
Henson used the fraudulently obtained funds for cosmetic surgery, extensive home renovations
Baltimore, Maryland / Friday, January 23, 2026 – U.S. District Judge Matthew J. Maddox sentenced Nichelle Henson, 38, of Baltimore, Maryland, to four years in federal prison for bank fraud and making false statements in connection with filing fraudulent Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) loans applications. Henson filed the applications in the names of multiple purported businesses that she previously incorporated in the state of Maryland.
Kelly O. Hayes, U.S. Attorney for the District of Maryland, announced the sentence with Special Agent in Charge Jimmy Paul, FBI – Baltimore Field Office.
According to the evidence presented at trial, Henson incorporated several businesses with the State of Maryland, including Crowns Construction, LLC; Nichelle Henson Campaign, LLC; One Stop for Services, LLC; Your Friendly Tax Preparation Services, LLC; Women Entrepreneurs Can Succeed, LLC; and Peace of Mind Services, Inc. Henson opened bank accounts in the names of some of her businesses and obtained Tax Identification Numbers (TINs) from the Internal Revenue Service (IRS) for the businesses.
In 2020 and 2021, she submitted six fraudulent EIDL applications to the SBA for her various businesses that contained false information concerning each business’s gross receipts, costs of goods sold, and number of employees. At the time of the submissions, none of the businesses were operating, and none of the businesses had employees. As a result of the applications, Henson received $18,000 in United States Treasury funds from the SBA.
Additionally, between April 30, 2020, and June 29, 2020, Henson submitted six PPP applications for her various businesses. One of these businesses, Nichelle Henson Campaign, served as an entity designed to fund Henson’s run for Baltimore City Council. However, on May 10, 2020, Henson submitted the application for the campaign, but she withdrew her candidacy back on November 19, 2019. Henson ultimately obtained $998,590 as a result of these six fraudulent applications.
Then on January 19, 2021, Henson submitted six more fraudulent PPP loan applications, this time to M&T Bank, for each of her six purported businesses. Each of these applications contained lies about the existence of each business, the number of their employees, and payroll paid.
In total, Henson obtained $1,692,840 in connection with her scheme to defraud. Henson used the PPP funds she received in multiple impermissible ways under the PPP, including for cosmetic surgery, extensive renovations to her home and a family member’s home, a year’s rent payment for her personal home, a year’s rent payment for a new business venture, and to fund other new business ventures. The business endeavors included a used-car dealership, which never opened, and creating a cryptocurrency called Subina Coin, to relatedly, fund an entity called the “Adageyhdi Indian Nation.”
This case is part of the District of Maryland COVID-19 Strike Force, a Strike Force that is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud, including fraud relating to the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act was designed to provide emergency financial assistance to Americans suffering the economic effects caused by the COVID-19 pandemic. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.
For more information about the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
U.S. Attorney Hayes commended the FBI and Pandemic Response Accountability Committee Fraud Task Force for their work in the investigation. Ms. Hayes also thanked Assistant U.S. Attorney Joseph Wenner, who prosecuted the federal case, and Paralegal Specialist Julie Jarman for her valuable assistance.
For more information about the Maryland U.S. Attorney’s Office, its priorities, and resources available to report fraud, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/report-fraud.
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Contact
Kevin Nash
USAMD.Press@usdoj.gov
410-209-4946
Source: U.S. Attorney's Office, District of Maryland
