Memphis, TN – A Memphis woman has been sentenced to federal prison for defrauding state and federal programs out of over $560,000 intended to help people during the COVID-19 pandemic. D. Michael Dunavant, United States Attorney for the Western District of Tennessee, announced the sentence today.
Karen Guevara, 38, was sentenced on February 13, 2026 by Chief United States District Judge Sheryl H. Lipman to one year and a day of incarceration to be followed by three years of supervised release for conspiracy to commit wire fraud and making false claims against the United States government.
According to information presented in court, Guevara and her co-conspirators defrauded the United States government out of over $560,000 by filing fraudulent applications for unemployment benefits in over 20 different states during the first year of the COVID-19 pandemic. Tabor and her co-conspirators also defrauded the federally funded Tennessee Emergency Cash Assistance (ECA) program of approximately $20,000 by creating fake employment termination notices for themselves and others. The ECA program was intended to provide financial assistance to individuals who had been significantly affected by the COVID-19 pandemic because of lost employment.
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