North Plainfield man defrauded $860K in COVID relief loans, feds allege
A Somerset County man was arrested Thursday for allegedly fraudulently obtaining more than $860,000 in federal Paycheck Protection Program (PPP) and Economic Injury Disaster Loan payments (EIDL), U.S. Attorney Philip R. Sellinger announced.
Butherde Darius, 49, of North Plainfield, was charged with one count of bank fraud, one count of wire fraud, and four counts of money laundering. Darius was scheduled to make his first court appearance Thursday afternoon.
Darius is alleged to have submitted loan applications that contained fraudulent information about his purported business, Fabulous Appetizers LLC. He allegedly fabricated the existence of employees and the revenue for the business. Darius received approximately $862,000 in federal COVID-19 emergency relief funds meant for distressed small businesses, Sellinger said.
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Darius allegedly spent the proceeds on personal expenses, including hotels and airfare, and made cash withdrawals of more than $58,000.
The count of bank fraud carries a maximum penalty of 30 years in prison and a $1 million fine; each count of wire fraud carries a maximum penalty of 20 years in prison; and each count of money laundering carries a maximum penalty of 10 years in prison. Both the wire fraud and money laundering counts carry a maximum fine of $250,000 or twice the gross gain to the defendant or gross loss to the victim, whichever is greatest.
Email: alewis@njpressmedia.com
Alexander Lewis is an award-winning reporter and photojournalist whose work spans many topics. This coverage is only possible with support from our readers. Sign up today for a digital subscription.
This article originally appeared on MyCentralJersey.com: Somerset County man defrauded $860K in COVID relief loans, feds allege
