A Denver jury has convicted a woman of all charges after she was accused of filing false documents to receive federal COVID support for her online businesses. The woman reportedly received nearly half a million dollars before federal authorities intervened and stopped her from receiving any more funds.
Shambrica Washington, who is 39 years old, has been convicted of all 31 charges against her, which includes wire fraud, bank fraud, money laundering, and false claims.
On June 28, the jury delivered its verdict in federal court, one day earlier than expected. The trial was originally scheduled to last for five days, but it concluded after only four.
Federal prosecutors have stated that Tiny Toes and Tiaras, an online luxury baby apparel boutique, and TrueLove’s Daughters, a non-profit organization focused on female empowerment, were owned by Washington. In the period between March and July 2020, Washington secured loans from the Small Business Administration for two Economic Injury Disaster Loans and from JPMorgan Chase for two PPP loans, totaling $485,749.00. However, prosecutors claim that the loan applications contained false information regarding the number of employees, wages, revenues, and operational costs of the businesses.
Moreover, the prosecutors accused Washington of utilizing the unlawfully acquired funds to buy a car and a specially constructed residence, cover the expenses of elective surgery, and settle the outstanding credit card debts along with other bills.
According to prosecutors, Washington made efforts to secure additional loans, grants, and tax credits worth millions of dollars, but unfortunately, none of them were approved. One of these efforts involved applying for a $6 million SBA grant that was specifically meant for closed concert venues.
During the time of the infractions, Washington and her husband, Jean Victor Damus, resided in Fountain. However, they relocated to Allen, Texas in the fall of 2020. According to prosecutors, Washington persisted in submitting inaccurate information for federal COVID relief funds on behalf of another company that also deals in high-end children’s fashion.
According to online public records, the couple was able to purchase their new home in Texas, which has an assessed value of $1,140,000, with a loan of less than $24,000 after selling their previous home in Fountain for $420,000.
Back in June 2022, the couple faced a federal indictment. Victor Damus later entered into a plea deal with prosecutors a year after and was sentenced in November of the same year. He was found guilty of False Claims to the Internal Revenue Service and was given a sentence of three years of supervised probation.
As the accusations were hurled towards Washington, he didn’t stay silent. He fought back publicly, in some cases. Prior to the trial, a certain X account managed by Shaye Damus from Colorado Springs openly criticized the local, state, and federal authorities: “Colorado is KKK country. Corruption is rampant, starting from the local law enforcement in El Paso County and all the way up to the DOJ and FBI. When will it all stop?” This post was made on March 7, 2023. “When will black people finally get to experience true freedom in this country?”
According to federal authorities, Washington allegedly neglected to include her criminal history on at least one application for federal funds. It was discovered that during the time she was supposedly completing falsified federal applications, Washington had already pleaded guilty to identity theft in El Paso County court in June 2020. As part of her sentence, she received a two-year deferred sentence in addition to 100 hours of community service. However, the county case has been re-opened since then. Washington is set to attend a review hearing on Thursday.
In late September, she will stand before a judge to face sentencing for federal fraud charges.
The federal investigation was carried out by the IRS Criminal Investigation and the FBI Denver Field Office.
