Hawkeye Reporter

An Eastern Iowa woman has been sentenced to over a year in federal prison for defrauding more than $25,000 in federal benefits meant for victims of the August 2020 derecho and the COVID-19 pandemic. Denisha Clarice Morrison, aged 28 from Marion, Iowa, was sentenced on June 27, 2025, following her guilty pleas on January 10, 2025, to charges of theft of government funds and wire fraud.

The severe storm known as a derecho hit multiple counties in Northern Iowa on August 10, 2020. It caused extensive damage and power outages across Cedar Rapids and other areas. The Federal Emergency Management Agency (FEMA) declared Disaster No. 4557 for Iowa on August 17, allowing victims to apply for disaster relief assistance.

In October 2020, Morrison falsely claimed she was residing in an apartment affected by the derecho and received over $7,000 in FEMA benefits. She admitted this during a plea agreement. Additionally, Morrison filed a fraudulent application for Paycheck Protection Program (PPP) loans in June 2021 by claiming ownership of a cleaning business. This resulted in her receiving $20,000 fraudulently.

While awaiting trial on federal charges, Morrison committed theft in Waterloo and violated pretrial release terms multiple times through illegal substance use and failing to meet employment requirements.

Morrison's sentence was delivered by United States District Court Chief Judge C.J. Williams in Cedar Rapids. She received an 18-month imprisonment sentence and must pay $27,191.45 restitution to FEMA and the SBA. Post-imprisonment includes three years of supervised release with no parole option available.

Assistant United States Attorney Timothy L. Vavricek prosecuted the case after an investigation led by the Department of Homeland Security's Office of Inspector General.