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Donna J. Clark Indicted for Fraud and Money Laundering in COVID-19-Related PPP Loan Scheme

2021-08-09 · Press release

Mentions 1960 Verified 1960

Summary: On August 9, 2021, Donna J. Clark, Sr., 64, of Benton, TN, was arrested and arraigned on an indictment charging her with wire fraud, money laundering, and operating an unlicensed money transmittal business, commonly known as a “money mule” operation. Clark pleaded not guilty to the charges, and trial has been set for October 5, 2021, at 9:00 a.m., before the Honorable Charles E. Atchley, Jr., in the United States District Court for the Eastern District of Tennessee at Chattanooga.

On August 9, 2021, Donna J. Clark, 64, of Benton, TN, was arrested and arraigned on an indictment charging her with wire fraud, money laundering, and operating an unlicensed money transmittal business, commonly known as a “money mule” operation. Clark pleaded not guilty to the charges, and trial has been set for October 5, 2021, at 9:00 a.m., before the Honorable Charles E. Atchley, Jr., in the United States District Court for the Eastern District of Tennessee at Chattanooga.

According to court documents filed by the United States, from October 2020 to July 2021, Clark participated in a scheme in which she received, deposited, transferred, and transmitted money obtained as part of fraudulent schemes – including fraud related to the receipt of a COVID-19-related PPP loan – in order to add layers to the money trail from victims to the criminal actors for whom Clark laundered money.

Clark faces a possible sentence of up to 30 years’ imprisonment on the wire fraud count, up to 10 years’ imprisonment on the money laundering count, and up to 5 years’ imprisonment for operating an unlicensed money transmittal business, along with significant fines, restitution, and forfeiture of property.

Assistant United States Attorney Steven Neff represents the United States.

The investigation was conducted by the FBI and the U.S. Attorney's Coronavirus Fraud Task Force.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/coronavirus.

Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.

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https://www.justice.gov/usao-edtn/pr/donna-j-clark-indicted-fraud-and-money-laundering-covid-19-related-ppp-loan-scheme
extras_json
participant_id name role title organization location age nationality status
1874 Donna J. Clark defendant Benton, TN 64 indicted
1875 Steven Neff prosecutor Assistant United States Attorney U.S. Attorney's Office Eastern District of Tennessee
1876 Charles E. Atchley, Jr. judge Judge United States District Court for the Eastern District of Tennessee Chattanooga, TN
agency_id agency_name abbreviation role office_location agents_mentioned contribution
1171 Federal Bureau of Investigation FBI investigation conducted the investigation
1172 U.S. Attorney's Coronavirus Fraud Task Force investigation assisted in the investigation
1173 National Center for Disaster Fraud NCDF reporting operated the fraud hotline for public reporting
charge_id charge_description statute severity max_penalty fine_amount defendant status participant_id cl_docket_id count_num is_1960 verified_1960 source updated_at
960 wire fraud 30 years’ imprisonment Donna J. Clark indicted 0 enrichment
961 money laundering 10 years’ imprisonment Donna J. Clark indicted 0 enrichment
962 operating an unlicensed money transmittal business 5 years’ imprisonment Donna J. Clark indicted 1 enrichment 2026-09-16T19:43:14+00:00
fin_id action_type amount currency description asset_type defendant status
359 fine significant fines cash Donna J. Clark pending
360 restitution restitution cash Donna J. Clark pending
361 forfeiture forfeiture of property property Donna J. Clark pending
victim_id victim_type description number_affected loss_amount geographic_scope vulnerability_factors impact_description
255
quote_id quote_text speaker_name speaker_title speaker_organization quote_type context significance
1055 an indictment constitutes only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt U.S. Department of Justice statement Reminder to the public about the presumption of innocence Emphasizes the legal principle that defendants are innocent until proven guilty
theme_id theme_name description significance related_statutes geographic_scope temporal_aspects stakeholders
1205 Wire Fraud Clark participated in a scheme involving fraudulent schemes, including PPP loan fraud, to launder money. Primary charge with potential 30-year imprisonment. 18 U.S.C. § 1343 National Recent development (2020-2021) Law enforcement, Victims, Financial institutions
1206 Money Laundering Clark laundered money by depositing, transferring, and transmitting funds to obscure the trail from victims to criminals. Central to the case, with a 10-year sentence. 18 U.S.C. § 1956, 18 U.S.C. § 1957 National Recent development (2020-2021) Law enforcement, Criminal actors, Victims
1207 Unlicensed Money Transmittal Business Clark operated a 'money mule' operation without proper licensing. Charge with up to 5 years imprisonment, part of the money laundering scheme. 18 U.S.C. § 1960 National Recent development (2020-2021) Law enforcement, Financial institutions
1208 COVID-19 PPP Loan Fraud Fraudulent receipt of PPP loans as part of the scheme. Key element of the fraudulent activities, tied to pandemic relief funds. National Pandemic period (2020-2021) Government agencies, Financial institutions, Victims
1209 Federal Investigation Conducted by FBI and U.S. Attorney's Coronavirus Fraud Task Force. Crucial in uncovering the scheme and bringing charges. National Recent development (2020-2021) Law enforcement agencies, DOJ

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