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North Plainfield man defrauded $860K in COVID relief loans, feds allege

A Somerset County man was arrested Thursday for allegedly fraudulently acquiring greater than $860,000 in federal Paycheck Safety Program (PPP) and Financial Damage Catastrophe Mortgage funds (EIDL), United State Lawyer Philip R. Sellinger introduced.

Butherde Darius, 49, of North Plainfield, was charged with one depend of financial institution fraud, one depend of wire fraud, and 4 counts of cash laundering. Darius was scheduled to make his first courtroom look Thursday afternoon.

Darius is alleged to have submitted mortgage purposes that contained fraudulent details about his purported enterprise, Fabulous Appetizers LLC. He allegedly fabricated the existence of workers and the income of his enterprise. Darius obtained roughly $862,000 in federal COVID-19 emergency reduction funds meant for distressed small companies, Sellinger mentioned.

Darius allegedly spent the proceeds on private bills, together with lodges and airfare, and made money withdrawals of over $58,000.

The depend of financial institution fraud carries a most penalty of 30 years in jail and a $1 million fantastic; every depend of wire fraud carries a most penalty of 20 years in jail; and every depend of cash laundering carries a most penalty of 10 years in jail. Each the wire fraud and cash laundering counts carry a most fantastic of $250,000 or twice the gross achieve to the defendant or gross loss to the sufferer, whichever is biggest.

 

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