Tennessee’s MEMPHIS — A federal indictment was issued against a childcare owner in Memphis for allegedly squandering pandemic-related cash.
According to court records, the owner allegedly exploited bogus insurance claims to get more than $3 million in federal loans.
When Nikita Cannady applied for PPP and EIDL loans for her four businesses, which include the What About Us Childcare Center, What About Us Adult Day Care Center, What About Us Home Healthcare, and the What About Us Foundation, she allegedly “unlawfully obtained money and other property by means of false and fraudulent pretenses, representations, and promises.”
Cannady allegedly received approximately $250,000 in PPP loans in addition to more than $100,000 from the Small Business Association.
In her loan applications, Cannady allegedly misrepresented critical information, including revenue and the number of employees, which had an effect on the loan’s size.
Cannady allegedly sent insurance companies bills for clients who never visited the medical facility and for treatments that were never rendered, according to the indictment. The indictment claims that Cannady got away with pocketing roughly $2.7 million for that.
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According to the documents, which stated that Cannady “used the proceeds of the above-described fraud on the expenditures for herself, including, but not limited to, a down payment on a home and the purchases of vehicles,” she allegedly used those funds to pay for a down payment on a house, buy a Rolls Royce, and buy a Corvette.
Here is a video about a Daycare proprietor in Memphis charged with PPP loan and insurance fraud:
According to the document, she will be obliged to forfeit the vehicles.
The childcare facility is now open, but both the adult daycare facility and the home healthcare facility are described online as being permanently closed.