Former Va. House candidate, spouse accused of fraudulently getting over $220,000 in COVID-19 relief loans

RICHMOND, Va. (WRIC) -- A former candidate for the Virginia House of Delegates is accused of fraudulently applying for and receiving over $220,000 in federal loans from a program designed to help small businesses during the COVID-19 pandemic.

In late March, a federal grand jury handed down an indictment for former Democratic candidate Sheila Bynum-Coleman and her husband, Rashad Coleman.

Most recently, Bynum-Coleman was the Democratic candidate in the Nov. 2019 General Election for the Virginia House of Delegates' District 66, which then contained parts of Chesterfield County and Colonial Heights. She lost to Republican candidate Kirk Cox.

Per court documents, Bynum-Coleman and her husband face eleven charges related to an alleged scheme to defraud the federal government of at least $225,000 in Paycheck Protection Program (PPP) loans.

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In their indictment, prosecutors claim that Bynum-Coleman and Coleman filed at least nine "false and misleading" PPP loan applications across different businesses they reportedly owned and operated.

These PPP loan applications reportedly included things like forged and/or falsified tax documents and inaccurate claims about the businesses' incomes. Prosecutors added that, within several of these applications, Bynum-Coleman and Coleman allegedly claimed they did not own or operate more than one business.

Within court documents, prosecutors provide the following examples of loan amounts Bynum-Coleman and Coleman allegedly received for these respective businesses:

• $62,500 and $20,832 for J.C. Bynum Construction, LLC, a construction business
• $21,250 for Rashad Coleman-Handy Man Services, a repair and maintenance business
• $20,835 for R.H. Coleman Enterprises, LLC, a real estate investment/consulting business
• $20,835 for Sheila Coleman - Realtor, not a business registered with the state
• $20,832 for Coleman Property Management, a real estate management business
• $18,740 for Medina House of Fashion, LLC, a "service business"
• $18,737 for Moda Noir LLC, a consulting and clothing business
• $20,832 for Coleman REO Services LLC, a waste collection business

Bynum-Coleman and Coleman are accused of then spending this loan funding not on the businesses the loans were obtained for, but on personal expenses, luxury items and to fund Bynum-Coleman's campaign.

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This alleged spending includes:

• Paying down their home loan
• Purchasing luxury clothing
• Paying down Bynum-Coleman's personal credit card bills
• Paying down Coleman's personal credit card bills
• Funding "Friends of Sheila for Delegate," Bynum-Coleman's campaign, in the amount of $10,000

Bynum-Coleman and Coleman are also accused of submitting false statements to the Virginia Employment Commission relating to unemployment benefits. Per court documents, through this alleged fraud, Bynum-Coleman reportedly received at least $17,562 in benefits and Coleman received $7,896 in benefits.

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These allegations amount to one count of conspiracy to commit wire and bank fraud, nine counts of false statements on loan applications and one count of engaging in monetary transactions in criminally derived property.