Madinah Malikah Montgomery, a 33-year-old resident of Oklahoma City, has been sentenced to two years in federal prison for wire fraud and ordered to pay $300,000 in restitution. The announcement was made by U.S. Attorney Robert J. Troester.
Montgomery faced charges of wire fraud on March 19, 2024. In the wake of the COVID-19 pandemic, the Small Business Administration (SBA) expanded its Economic Injury Disaster Loan (EIDL) program to aid struggling small businesses. According to court documents, Montgomery applied for an EIDL loan on July 16, 2020, falsely claiming she owned a salon with ten employees and annual revenues of $600,000. This resulted in her receiving $149,900 from the SBA.
On April 3, 2024, Montgomery admitted guilt in submitting a fraudulent EIDL application and obtaining $149,000 from it.
During her sentencing on November 22, 2024, the prosecution highlighted that Montgomery applied for three separate EIDL loans totaling $385,000 over three months and received $300,000. U.S. District Judge Stephen P. Friot sentenced her to two years in federal prison followed by three years of supervised release. Judge Friot emphasized the seriousness of defrauding funds intended for businesses affected by COVID-19 and noted her extensive criminal history had not deterred further illegal activities.
Montgomery's previous felony convictions include possession with intent to distribute marijuana and drug paraphernalia in Oklahoma County; grand larceny; bringing contraband into a penal institution; unlawful possession with intent to distribute controlled substances; and conspiracy in Beckham County.
In another case pending trial in the Western District of Oklahoma, Montgomery faces charges for possessing fentanyl with intent to distribute but has pleaded not guilty.
The investigation involved multiple agencies including the United States Secret Service and Internal Revenue Service – Criminal Investigations among others. Assistant U.S. Attorney Bow Bottomly led the prosecution efforts.
This case is part of broader investigations by the Western District of Oklahoma Coronavirus Fraud Task Force targeting pandemic-related fraud involving various federal relief programs like PPP and EIDL under CARES Act and ARPA initiatives.
Further details can be found through public records.