Justice Department: Nevada woman pleads guilty to fraud scheme

LAS VEGAS (KTNV) — A Nevada woman could face jail time after pleading guilty to fraud.

According to court documents, 53-year-old Karen Chapon, also identified as Karen Hannafious, submitted six fraudulent Paycheck Protection Program, PPP, loan applications to three different financial institutions for her companies. The PPP program was established during the pandemic to provide loans to small businesses to keep them afloat.

Investigators state that between April 2020 and July 2020, Chapon made multiple false statements about her companies’ business operations and payroll expenses and submitted false documents, including fake tax filings. That led to her receiving four loans totaling $596,931.

Justice Department officials state Chapon used the money for her own benefit, including buying a Mercedes Benz SUV. She also falsely stated i the loan applications that she hadn’t been convicted of a felony. However, she pleaded guilty to separate felony fraud offenses in 2016.

A sentencing hearing has been scheduled for Nov. 29. If convicted, she’s facing up to 30 years in prison, restitution, and a fine.