Man Swindles $1.4M COVID Funds — Blows It on Romance Scam
A Colorado man’s fraudulent scheme to steal over $1.4 million in taxpayer-funded COVID relief money—only to blow it all on a romance scammer—exposes the catastrophic failures of Biden-era oversight that allowed criminals to ransack programs meant for struggling Americans.
Story Highlights
William Chadwick defrauded federal COVID-19 relief programs of over $1.4 million through fraudulent applications.
He converted stolen taxpayer funds into cryptocurrency and gift cards to woo an online romance scammer.
Over 100 fraudulent unemployment benefit applications were approved in his name between 2020 and 2022.
Sentenced to just 15 months in prison despite stealing funds meant for pandemic-struggling Americans.
William Chadwick, a 63-year-old Akron, Colorado resident, orchestrated a brazen assault on federal COVID relief programs designed to help Americans during the pandemic crisis. Federal prosecutors revealed that Chadwick systematically defrauded Unemployment Insurance benefits, Emergency Rental Assistance, and Paycheck Protection Program loans—all created under the CARES Act. Beginning in May 2020, just two months after the legislation passed, Chadwick began flooding federal agencies with fraudulent applications, exploiting the rushed rollout and inadequate oversight that characterized Biden administration relief efforts.
A Colorado man was sentenced to 15 months in prison for laundering more than $200,000 in COVID-19 relief funds during the pandemic’s peak, federal officials announced. https://t.co/hMResOwnA7
Staggering Scale of Fraudulent Applications Approved
The scope of Chadwick’s fraud reveals alarming weaknesses in federal verification systems. Between August 2022 and the present, he submitted over 100 fraudulent unemployment insurance applications, all containing misleading or false information. Federal agencies approved him for more than $1.4 million in benefits and issued 15 debit cards in other people’s names. This represents a complete breakdown of the safeguards that should protect taxpayer dollars from criminals. Chadwick withdrew over $81,000 through ATMs across Colorado, converting stolen relief funds into cash and cryptocurrency with apparent ease.
Romance Scammer Becomes Unwitting Beneficiary
Prosecutors determined that Chadwick’s motivation stemmed from an online romance scam, where he believed he was courting a woman he met during the pandemic. The fraudulently obtained funds were systematically converted into cryptocurrency and gift cards, then sent to this unidentified scammer. Federal investigators described how thousands more in stolen funds flowed through multiple bank accounts controlled by Chadwick, all ultimately destined for his supposed love interest. This case highlights how criminals exploited pandemic vulnerabilities while Americans faced genuine hardship, with stolen relief money flowing overseas to international scammers.
Light Sentence Raises Questions About Justice
Despite stealing over $1.4 million in taxpayer funds, Chadwick received only 15 months in prison and must repay $228,000—a fraction of what he stole. The maximum sentence for his money laundering charge was 20 years and $500,000 in restitution, making his actual punishment seem inadequate given the scale of theft. His sentencing has been delayed due to recent government shutdowns, and he declined to comment when reached at his home. This lenient treatment contrasts sharply with the financial devastation many law-abiding Americans experienced during the pandemic while waiting for legitimate relief that criminals like Chadwick were siphoning away.
