Daughter of prominent J’can politician in Florida arrested on federal fraud charges

The United States government has brought federal fraud charges against the daughter of a prominent Jamaica-born, Florida politician.

Damara Holness, 28, was arrested and charged with fleecing some US$300,000 from a federal government programme that is meant to help struggling small businesses during the COVID-19 pandemic.

She appeared in court on Wednesday and was granted bail in the sum of US$100,000.

Ms Holness was charged with one count of conspiring to commit wire fraud. She is accused of lying about the financial needs of her consulting business located in Plantation, Florida, to qualify for a Paycheck Protection Programme loan.

Her father, Dale Holness, is the current Broward County commissioner and is slated to run in the January 2022 special election to fill the congressional seat left vacant by the death of Alec Hastings. He is one of 10 candidates who is seeking to be elected to the congressional seat.

He has since distanced himself from his daughter and her business, saying that they have been estranged for years.

According to the criminal complaint filed in the Fort Lauderdale Federal Court, last year when Damara Holness was serving as president of the Broward County Democratic Black Caucus, she applied for a US$300,000 loan for her company, Holness Consulting Inc.

NO EMPLOYEES, NO PAYROLL

The US government said that in her application, Holness claimed that her company employed 16 people and spent an average of US$120,000 a month on payroll. But the US government is claiming that she has no employees and no payroll expenses and used fraudulent payroll tax forms to support her loan request.

A bank in Georgia, which reviewed her company’s application, approved the loan and wired the US$300,000 to her account in South Florida.

In a statement issued yesterday, her attorney Sue-Ann Robinson said that like everyone, Ms Holness is entitled to the presumption of innocence.

Damara Holness was among thousands of Florida businesses that turned to the federal Paycheck Protection Programme for assistance during the pandemic.

But the authorities said she cheated the system by lying about her company’s financial profile and payroll.

The COVID-19 relief programme was approved by the US Congress last year when the coronavirus pandemic swept the nation, forcing the closure of businesses, changing working patterns and forcing stay-at-home mandates.

The programme was designed to help struggling businesses apply for loans that are guaranteed by the Small Business Administration and would be ultimately forgiven.

Since its inception under the CARES Act, the US$600-billion programme has been credited with helping many businesses, including a number of small businesses, to survive by paying the wages of employees.

However, the programme has also generated several cases of fraud investigations in Florida and elsewhere across the nation.