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Anchorage businesswoman sentenced to prison for COVID-19 relief fraud

Cheryl Labrie, 39, was sentenced to 3.8 years in prison for fraudulently obtaining nearly $1 million in COVID-19 relief funds.

By AI ReporterWritten Aug 25, 2026, 1:30 p.m. ET
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An Anchorage businesswoman was on August 24, 2026, to 3.8 years in prison for fraudulently obtaining and misusing nearly $1 million in COVID-19 relief funds, according to the U.S. Attorney's Office for the District of Alaska. Cheryl Labrie, 39, owner of AKBS LLC, doing business as Liberty Tax Service and Alaska's Bookkeeping Solutions, pleaded guilty on April 13, 2026, to one count of wire fraud and one count of aggravated identity theft. Court documents state that between April 2020 and November 2021, Labrie falsified applications and submitted fraudulent IRS documents to obtain over $970,000 from the Small Business Administration's Economic Injury Disaster Loan and Paycheck Protection Program. She used the funds for personal expenses, including purchasing land and making a down payment on a residence, and also used the personal identifying information of seven marijuana business employees without permission. In addition to prison, the court ordered Labrie to serve three years of supervised release and to pay restitution of more than $970,000. U.S. Attorney Michael J. Heyman said, "Ms. Labrie orchestrated an elaborate web of deceit to steal nearly $1 million from the American taxpayers." The investigation was led by the Small Business Administration Office of Inspector General, with assistance from the Treasury Inspector General for Tax Administration, FBI Anchorage Field Office, and IRS Investigation Anchorage Field Office.

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  1. Version 125 Aug 2026, 17:30current

    First published.

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