Madinah Malikah Montgomery, 33, of Oklahoma City, has been sentenced to 24 months in federal prison for wire fraud related to fraudulent Economic Injury Disaster Loan (EIDL) applications. The U.S. Attorney’s Office for the Western District of Oklahoma also announced that Montgomery was ordered to pay $300,000 in restitution to the United States.
Montgomery pleaded guilty to the charges on April 3, 2024, admitting to submitting a fraudulent EIDL application on July 16, 2020. She claimed to be the sole owner of a salon with 10 employees and gross revenues of $600,000, leading the Small Business Administration (SBA) to approve a $149,000 loan. However, the department revealed that Montgomery used the funds for personal expenses instead of business-related purposes.
At her sentencing on November 22, 2024, prosecutors presented evidence showing that Montgomery fraudulently applied for three separate EIDL loans totaling $385,000 over three months, receiving $300,000 in total. The funds were misappropriated for personal use, contrary to the relief purpose of the loans.
U.S. District Judge Stephen P. Friot sentenced Montgomery to two years in prison and required her to pay $300,000 in restitution. Montgomery has a history of prior felony convictions, including charges of possession of marijuana with intent to distribute, grand larceny, and conspiracy.
