A $3.8 Million Scam Ends in Federal Sentencing
A Michigan woman accused of orchestrating a wide-scale COVID-19 relief fraud scheme has been sentenced to 10 years in federal prison, according to the U.S. Department of Justice.
Danielle T. Morris, 37, of Detroit, was convicted of submitting dozens of fraudulent applications for Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL) during the height of the pandemic in 2020–2021. Prosecutors say Morris used false business records, fake tax documents, and manipulated identities to collect more than $3.8 million in relief funds.
How the Fraud Was Discovered
According to court filings, Morris and her accomplices submitted over 70 loan applications on behalf of businesses that either did not exist or had grossly inflated payroll data.
Federal investigators flagged the applications due to:
- Repeated use of identical employee counts
- Mismatched tax IDs
- Bank accounts opened just days before fund deposits
By late 2022, the IRS Criminal Investigations Division and SBA Office of Inspector General had launched a joint investigation.
“This sentence reflects the seriousness of abusing programs meant to keep Americans employed,” said U.S. Attorney Patrick Sullivan for the Eastern District of Michigan.
Lifestyle Fueled by Relief Funds
Prosecutors presented evidence that Morris used the fraudulently obtained money to purchase:
- Two luxury vehicles, including a 2021 Range Rover
- Over $180,000 in designer clothing and handbags
- Down payment on a home in the Birmingham suburbs
- Frequent travel to Florida and the Caribbean during 2020 lockdowns
Agents seized multiple items and froze six bank accounts as part of asset recovery efforts.
Plea and Sentencing
Morris pleaded guilty to wire fraud, aggravated identity theft, and money laundering in late 2024. She was sentenced this week to:
- 10 years in federal prison
- $3.1 million in restitution
- Permanent disqualification from future federal contracts or relief
The judge noted that while Morris cooperated post-arrest, “the scale of her deception required a meaningful deterrent.”
A Broader Crackdown on COVID Relief Fraud
Since 2021, federal authorities have charged more than 2,100 individuals nationwide in pandemic-related fraud cases. The DOJ has reclaimed over $1.4 billion in misused funds.
According to the Government Accountability Office (GAO), estimated total fraud across pandemic-era aid programs may exceed $60 billion.
“Let this serve as a warning,” said Inspector General Ryan Kelleher. “We’re still investigating, and we’re not done.”
From luxury spending to federal prison, the rise and fall of Danielle Morris mirrors a broader reckoning as federal prosecutors continue to uncover pandemic-era fraud.
With thousands of investigations still active and billions in relief funds unaccounted for, the Morris case may only be one headline in a much longer story.
