A former candidate for the Virginia House of Delegates was sentenced to two years in prison for her role in obtaining and misusing more than $225,000 in federal Paycheck Protection Program loans during the COVID-19 pandemic. The sentence follows a guilty plea to charges of making false statements on loan applications and failing to file tax forms. Prosecutors had recommended a longer term while the defense sought no incarceration. The individual is appealing the outcome.
Sheila Bynum-Coleman ran as the Democratic nominee in the November 2019 election for House District 66 which included portions of Chesterfield County and Colonial Heights. She was defeated by Republican Kirk Cox in that contest. In early 2025 she and her husband Rashad Coleman faced indictment in connection with the loan scheme. The case involved allegations that loan proceeds were used for non-business purposes.
Details of the Case
According to court filings the loans were obtained through false representations and the funds were spent on personal expenses luxury items and campaign activities instead of payroll support for qualifying businesses. Bynum-Coleman faced eleven initial charges but resolved the matter through a plea agreement that dismissed most counts. Prosecutors highlighted the extensive efforts involved in creating fraudulent documentation and multiple bank accounts to sustain the scheme.
The defense maintained that the recommended sentence was excessive and that the facts were already accounted for in sentencing guidelines. They described their client as accepting responsibility and focused on restitution and future compliance. The court considered these positions before imposing the two-year term on June 28 along with three years of supervised release.
Sentencing Outcome
In addition to prison time Bynum-Coleman was ordered to pay $120,955 in restitution divided among Virginia National Bank the Small Business Administration and the Virginia Employment Commission. This amount represents partial recovery of the diverted funds. The sentence takes effect following the plea and reflects judicial determination of appropriate punishment.
The case arose from federal efforts to address fraud in pandemic relief programs established to aid small businesses. Loan applications required accurate statements regarding business operations and intended use of funds. Violations of these requirements carry significant penalties under federal law.
Appeal Filed
On the day of sentencing Bynum-Coleman informed the court of plans to appeal both her conviction and the imposed sentence. The notice cites claims of ineffective assistance of counsel in plea discussions and representation through sentencing. Further proceedings in the appellate process are expected. No additional updates were available at the time of reporting.
Federal authorities continue to pursue cases involving misuse of relief funds to deter similar conduct. Restitution orders and supervised release terms are standard components in such resolutions. The matter remains subject to ongoing legal review.
https://www.wric.com/news/local-news/richmond/former-house-candidate-ppp-loan-fraud-sentencing/
