Eastern Iowan sentenced for fraud related to derecho and pandemic aid

Eastern Iowan sentenced for fraud related to derecho and pandemic aid
Timothy T. Duax U.S. Attorney — U.S. Attorney for the Northern District of Iowa
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An Eastern Iowa woman, Denisha Clarice Morrison, was sentenced to over a year in federal prison for stealing more than $25,000 in federal benefits intended for victims of the August 2020 derecho and the COVID-19 pandemic. Morrison, aged 28 from Marion, Iowa, pleaded guilty on January 10, 2025, to one count of theft of government funds and one count of wire fraud.

The severe storm known as a derecho hit multiple counties in Northern Iowa on August 10, 2020. This event caused widespread power outages and significant damage in Cedar Rapids. In response, FEMA declared Disaster No. 4557 for Iowa on August 17, 2020. Residents in affected counties could apply for disaster relief assistance through FEMA.

Morrison admitted to receiving over $7,000 in FEMA benefits by falsely claiming she lived in an apartment damaged by the derecho. She also filed a fraudulent application for Paycheck Protection Program (PPP) loans in June 2021, falsely claiming ownership of a cleaning business to receive $20,000.

While awaiting trial, Morrison committed theft in Waterloo and violated pretrial release terms by testing positive for illegal substances and failing to comply with employment and location monitoring requirements. Her criminal history includes multiple state court convictions.

United States District Court Chief Judge C.J. Williams sentenced Morrison to 18 months’ imprisonment and ordered her to pay $27,191.45 in restitution to FEMA and the SBA. After serving her sentence without parole eligibility under federal guidelines, she will undergo three years of supervised release.

Morrison is currently held by the United States Marshal until transfer to a federal prison facility is arranged. The case was prosecuted by Assistant United States Attorney Timothy L. Vavricek with investigation support from the Department of Homeland Security’s Office of Inspector General.



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