NEWARK, N.J. – Six Essex County, New Jersey, residents have been arrested in the present day for scheming to fraudulently receive Paycheck Safety Program (PPP) loans, U.S. Lawyer Philip R. Sellinger introduced.
Nyan Terry, aka “Racks,” 23, of Irvington; Samir Jefferson, aka “Tank Jeffe,” 23, of Newark; and Nasir Williams, aka “Harlem Pete,” 29, Hymeen Reynolds, aka “Meen,” 21, Brian Brown, aka “Bizz,” 40, and Cadece Lapread, 35, all of East Orange, are every charged by criticism with one depend of financial institution fraud. Terry, Reynolds, Brown, Lapread, and Jefferson are additionally charged with one depend every of financial institution fraud conspiracy. The defendants made their preliminary appearances in the present day earlier than U.S. Justice of the Peace Decide Jessica S. Allen.
In accordance with paperwork filed on this case and statements made in courtroom:
The Coronavirus Assist, Reduction, and Financial Safety (CARES) Act is a federal legislation enacted in March 2020 and was designed to supply emergency monetary help to the thousands and thousands of People struggling the financial results attributable to the COVID-19 pandemic. One supply of aid supplied by the CARES Act was the authorization of tons of of billions of {dollars} in forgivable loans to small companies for job retention and sure different bills, via the PPP.
To acquire a PPP mortgage, a qualifying small enterprise was required to use and supply data on its operations, together with the variety of staff and bills. As well as, companies usually had to supply supporting documentation.
In April and Might 2021, Terry, Jefferson, Williams, Reynolds, Brown, and Lapread schemed to defraud PPP lenders by submitting fraudulent PPP mortgage functions within the names of nonexistent small companies, together with solid tax varieties. Based mostly on the defendants’ misrepresentations, lenders authorised not less than three fraudulent PPP loans and disbursed greater than $62,000 in federal COVID-19 emergency aid funds.
The counts of financial institution fraud and financial institution fraud conspiracy every carry a most penalty of 30 years in jail and a most fantastic of $1 million.
U.S. Lawyer Sellinger credited particular brokers of the FBI, below the route of Particular Agent in Cost Jesse Levine in Newark; particular brokers of the Division of Homeland Safety, Homeland Safety Investigations, below the route of Particular Agent in Cost Jason J. Molina in Newark; and particular brokers of IRS-Felony Investigation, below the route of Performing Particular Agent in Cost Tammy Tomlins, with the investigation resulting in the fees. He additionally thanked the Bloomfield Police Division, the Essex County Sheriff’s Workplace, the Essex County Prosecutor’s Workplace, and the Newark Division of Public Security for his or her help within the investigation.
The federal government is represented by Particular Assistant U.S. Lawyer Timothy Shaughnessy and Assistant U.S. Lawyer Sarah A. Sulkowski of the U.S. Lawyer’s Organized Crime/Gangs Unit in Newark.
The costs and allegations contained within the criticism are merely accusations, and the defendants are presumed harmless until and till confirmed responsible.
