A couple who previously resided in the Charlotte region pleaded guilty to federal charges for stealing more than $1.4 million in COVID relief funds, authorities announced Friday.
Tatiana Vazquez, 39, pleaded guilty to wire fraud conspiracy affecting a financial institution and conspiracy to defraud the government, according to the U.S. Attorney’s Office for the Western District of North Carolina. Her co-conspirator, 41-year-old Marquise Highsmith, pleaded guilty to the same charges on Oct. 7.
The pair previously lived in Midland in Cabarrus County. They also resided in New York.
According to court documents, the fraudulent activity occurred in two waves. From May 2020 to January 2022, Vazquez, Highsmith and several associates submitted fraudulent applications to financial institutions and the Small Business Administration. These applications sought loans through the Paycheck Protection and Economic Injury Disaster Loan programs.
To secure the funds, the group provided falsified information, including fabricated tax filings and inflated employee totals.
Highsmith operated transportation and delivery services and a business called MRHReality Group. Vazquez ran a business called Jadore Dream Bartending Services and 5 Star Securities Services. Together, they also ran a business called Transportation Marketing Services, records show.
As a result, the couple obtained more than $450,000.
Prosecutors noted that after receiving the money, the defendants filed loan forgiveness applications containing further inaccuracies, which led to the dismissal of some debt.
The scheme evolved between July 2022 and February 2023, when Vazquez and Highsmith targeted IRS-operated programs, including the Employee Retention Credit and the Sick Leave and Family Leave Credit. These programs were designed to provide tax credits to legitimate businesses for employment taxes and wages.
By filing false tax forms, the defendants collected over $1 million in additional refunds to which they were not entitled.
Court documents say the funds were used to fund their lifestyle and on luxury goods, although the documents did not provide additional details on the spending.
Vazquez and Highsmith were released on bond; a sentencing date has not yet been scheduled.
Widespread COVID fraud in the Charlotte Region
The guilty pleas arrive as federal prosecutors continue to pursue pandemic-related fraud across the Western District of North Carolina.
The total misuse of COVID funds in the district, which covers the Charlotte metro area, includes tens of millions, The Charlotte Observer previously reported. To date, more than 30 individuals have been prosecuted and convicted.
Among the pending cases is that of Charlotte City Councilwoman Tiawana Brown.
In May, a federal grand jury indicted Brown and her two daughters for allegedly orchestrating a $124,000 COVID fraud scheme. Prosecutors allege the trio used the funds for personal expenses, including $15,000 for a private birthday party for Brown.
Chase Jordan
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