A federal judge sentenced Nichelle Henson after a jury found she submitted fraudulent EIDL and PPP applications and used loan proceeds for personal expenses. The conviction was part of a larger $1.7 million scheme targeting pandemic relief programs.

Nichelle Henson, a one‑time candidate for Baltimore City Council, was sentenced following a federal jury conviction that she participated in a scheme to obtain Economic Injury Disaster Loan (EIDL) and Paycheck Protection Program (PPP) funds through false statements. Prosecutors say Henson submitted fabricated applications and supporting documentation to the Small Business Administration and used proceeds for personal expenditures rather than legitimate business purposes. The charged conduct formed part of a broader scheme that ultimately used false paperwork to divert about $1.7 million in pandemic relief funds. During trial and sentencing, the Department of Justice emphasized the ongoing enforcement priority of recouping illicit proceeds and deterring fraud against federal relief programs established during the COVID‑19 pandemic. Sentencing included incarceration and conditions intended to promote restitution and accountability; investigators indicated efforts will continue to trace disbursed funds and identify co‑conspirators. The case underscores sustained federal focus on pandemic‑era loan fraud and recovery of misused taxpayer dollars.