William Chadwick, a 63-year-old resident of Akron, Colorado, has been sentenced to 15 months in federal prison and one year of supervised release after pleading guilty to money laundering. Chadwick was also ordered to pay $228,284.09 in restitution.
According to the plea agreement, between May 2020 and August 2022, Chadwick laundered proceeds from federal COVID-19 relief programs. These included Unemployment Insurance benefits, Emergency Rental Assistance funds, Paycheck Protection Program (PPP) loan proceeds, and other fraudulent sources. The funds were laundered on behalf of a woman he met online through various financial transactions such as ATM withdrawals and cryptocurrency transfers. In total, he laundered approximately $228,284.09.
United States Attorney Peter McNeilly stated: “Laundering money which was stolen from the federal government is a crime against every hard-working, tax-paying citizen of the United States. Our office is committed to prosecuting those who look to prosper off fraud against the government.”
Quentin Heiden, Special Agent-in-Charge for the Western Region at the U.S. Department of Labor’s Office of Inspector General added: “Chadwick laundered fraudulently obtained unemployment insurance funds intended for Americans that were struggling during the pandemic. This sentence highlights our commitment to relentlessly investigate fraud in DOL’s unemployment insurance program. We will continue to work with our law enforcement partners to hold accountable bad actors who perpetrate these crimes.”
The sentencing was overseen by United States District Judge William J. Martinez.
The investigation was conducted by the Department of Homeland Security Office of Inspector General and the Department of Labor Office of Inspector General. Assistant United States Attorney Nicole Cassidy prosecuted the case.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was enacted in March 2020 to provide emergency financial support during the COVID-19 pandemic. The CARES Act established programs like PPP loans for small businesses so they could retain workers and cover payroll costs; businesses could request loan forgiveness if used for eligible expenses.
Anyone with information about attempted COVID-19-related fraud can report it via the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or through their online complaint form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
