Broward spa owner used COVID loans for Bentley, luxury shopping spree, feds say

A Broward County woman is accused of fraudulently applying for COVID-19 loans for her medical spa business and using the money to lease a Bentley Bentayga and go shopping at the luxury Bal Harbour Shops in Miami Beach, federal prosecutors said Thursday.

Cassandra Yolanda Clarke, 45, of Miramar, made her initial appearance in Fort Lauderdale on Wednesday. She faces charges of wire fraud and money laundering, federal court records show.

Prosecutors allege in the indictment that Clarke submitted “false and fraudulent applications” for two Paycheck Protection Program loans on behalf of her medical spa businesses, Narotique Med Spa LLC and Narotique Beauty Bar Inc., in 2020. She allegedly submitted fraudulent IRS forms for the applications.

Clarke received two PPP loans, one for more than $400,000 for one business and another loan for more than $430,000 for the second, according to the indictment.

In April 2020, Clarke sent an email to someone referred to in the indictment only as “Accomplice 1” with a list of employee names and wages for her business Narotique Beauty Bar. In June, the accomplice emailed back with an IRS form for the Narotique Med Spa LLC business attached, and a PPP loan application was submitted on behalf of Narotique Med Spa in July, the indictment said.

In August, Clarke purchased a cashier’s check for about $18,000 with a memo that said “two and a half months salary,” the indictment alleged. She made two withdrawals in June and July 2020 from bank accounts, for $64,000 and $42,000.

She faces three counts of wire fraud and three counts of money laundering. Prosecutors said in the news release she faces up to 10 years in prison for the money laundering charges and 20 years for wire fraud. Her arraignment is scheduled for Dec. 20.

The Associated Press reported in 2023 that it was estimated that people stole more than $200 billion from the federal government’s two largest Covid-19 financial relief programs, including the Paycheck Protection Program. Experts and investigators told the AP that there was little government oversight and restrictions early on for applicants as the government needed to quickly disperse the the trillions of dollars in loans.