Memphis daycare owner accused of PPP loan, insurance fraud
MEMPHIS, Tenn. — A Memphis daycare owner was served a federal indictment after allegedly misusing funding received during the pandemic.
Court documents allege the owner misused more than $3 million in federal loans and fraudulent insurance claims.
According to that indictment, Nikita Cannady “unlawfully obtained money and other property by means of false and fraudulent pretenses, representations, and promises” when applying for PPP and EIDL loans for her four businesses, which include the What About Us Childcare Center, What About Us Adult Day Care Center, and What About Us Home Healthcare, and the What About Us Foundation.
Cannady allegedly received more than $100,000 from the Small Business Association, and another nearly $250,000 in PPP loans.
According to court documents, Cannady was not truthful in her applications about key information including revenue and the number of employees, which impacts the amount of the loan.
The indictment also said Cannady submitted bills to insurance companies for patients that were never patients at the health care center and for services that were never actually performed.
For that, according to the indictment, Cannady got away with almost $2.7 million.
Cannady allegedly put a down payment on a home, purchased a Rolls Royce, and bought a Corvette with those funds, according to the documents, which read “Cannady used the proceeds of the above-described fraud on the expenditures for herself, including, but not limited to, a down payment on a home and the purchases of vehicles.”
She will be required to forfeit those vehicles, according to the paperwork.
At this point, the child care center is operational, but online both the adult day care center and the home health care center are listed as permanently closed.
We spoke with Cannady on the phone, and she fully maintains her innocence. Her lawyer said she has pleaded not guilty and expects to be acquitted once this goes to trial.
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