The U.S. Department of Justice arrested a 64-year-old woman from Benton, Tennessee, on Monday. Donna Clark Sr. was arraigned on an indictment charging her with wire fraud, money laundering and operating an unlicensed money transmittal business, which the DOJ referred to as a "money mule" operation.
Money mules are people who transfer illegally acquired money on behalf of someone else. They move funds in various ways, including through bank accounts, cashier's checks, virtual currency, prepaid debit cards or money service businesses.
According to court documents, Clark participated in a scheme from October 2020 to July 2021 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.
The Department of Justice said the scheme was designed in order to "add layers to the money trail from victims to the criminal actors" for whom she laundered money.
Clark pleaded not guilty to the charges.
Trial has been set for Oct. 5, before Judge Charles E. Atchley Jr. in the United States District Court for the Eastern District of Tennessee at Chattanooga.
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 county, and up to five years imprisonment for operating an unlicensed money transmittal business, along with the significant fines, restitution and forfeiture of property.
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 hotline's web complaint form at justice.gov/coronavirus.
Contact Kelcey Caulder at kcaulder@timesfreepress.com or 423-757-6327. Follow her on Twitter @kelceycaulder.