6 accused of fraudulently obtaining business loans

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NEWARK, NJ (1,010 WINS) – Three notorious gang members are among six New Jersey residents who have been arrested for conspiring to fraudulently obtain Paycheck Protection Program (PPP) loans for more than $60,000, the Justice Department has announced. .

Nyan Terry, 23, of Irvington, Samir Jefferson, 23, of Newark, and Nasir Williams, 29, of East Orange were members of the “Sex Money Murder” sect of the Bloods street gang, according to court documents. charge. The other three defendants are Brian Brown, 40, and Cadece Lapread, 35, and Hymen Reynolds, 21, of East Orange.

During the pandemic, the CARES Act (Coronavirus Aid, Relief, and Economic Security Act) authorized hundreds of billions of dollars in forgivable loans to small businesses to maintain employment and certain other expenses, through the PPP .

The six defendants, in April and May 2021, submitted fraudulent PPP loan applications on behalf of non-existent small businesses, as well as bogus tax forms, according to the investigation.

Lenders have approved at least three fraudulent PPP loans and donated more than $62,000 in federal COVID-19 emergency relief funds.

The counts of bank fraud and conspiracy each carry up to 30 years in prison and a maximum fine of $1 million.

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