Long Island Man Sentenced to 36 Months in Prison for $1 Million Bank Loan and Credit Card Fraud Schemes

 

 Earlier today, in federal court in Central Islip, Marcello Sozio, the former operator of a hyperbaric oxygen chamber business based in Great Neck, New York and Chicago, Illinois, was sentenced by United States District Judge Denis R. Hurley to 36 months’ imprisonment for wire fraud in connection with a scheme to defraud banks, his business partners and a customer who allegedly received services from Sozio’s business.  The Court also ordered Sozio to pay approximately $1.1 million in forfeiture and restitution to the victims of his crimes. 

The sentence was announced by Jacquelyn M. Kasulis, Acting United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Philip R. Bartlett, Inspector-in-Charge, United States Postal Inspection Service, New York Division (USPIS), announced the sentence. 

“Today, the defendant has been deservedly sentenced to prison for the financial harm he caused by defrauding his business partners and lenders and stealing from the parents of a young patient,” stated Acting U.S. Attorney Kasulis. “In conjunction with its law enforcement partners, this Office will continue to seek compensation for victims and prosecute defendants like Sozio who, out of greed, commit fraud for their own financial gain.”

“Mr. Sozio is a classic example of a fraudster, who schemed and used others to obtain funds based on nothing but lies. Now Mr. Sozio will spend his time behind bars soaking in the air from a jail cell instead of one of his hyperbaric chambers,” stated USPIS Inspector-in-Charge Bartlett.

Between approximately March 2014 and December 2016, Sozio applied for and obtained approximately $770,000 in loans for a hyperbaric oxygen chamber business.  In the loan applications, Sozio claimed that his business partners had authorized him to apply for the loans on their behalf as part of their joint business venture.  The partners did not authorize the loan applications and Sozio obtained the unauthorized loans by forging the partners’ signatures on various loan documents, both by hand and electronically, and by impersonating one business partner during a telephone call with a lender.  As a result of Sozio’s actions, his partners were liable for approximately $770,000 in loans.  In addition, between September 2016 and December 2016, Sozio caused approximately $230,000 in credit card charges to the parents of a minor patient for services that were purportedly provided for medical reasons at a Great Neck facility that Sozio operated.  In reality, Sozio provided no services to the child in exchange for the fraudulent billings.  

Bronx Gang Member Sentenced For 2018 Playground Shooting Of A 13-Year-Old

 

Marvin Gamoneda Participated in a June 2018 Shooting in Which a Thirteen-Year-Old Child Was Struck By Gunfire

 Damian Williams, the United States Attorney for the Southern District of New York, announced that MARVIN GAMONEDA, a/k/a “June,” was sentenced today to 13 years in prison in connection with a shooting in the Nelson Playground on June 6, 2018, in the Highbridge neighborhood of the Bronx.  On March 15, 2021, GAMONEDA pled guilty to attempted murder and assault with a deadly weapon in aid of racketeering and a firearms offense before U.S. District Judge John G. Koeltl, who also imposed today’s sentence.

U.S. Attorney Damian Williams said: “On June 6, 2018, Marvin Gamoneda participated in a shooting in broad daylight in a Bronx playground filled with people, including children.  During the shooting, two individuals, including a child, were hit.  Today’s lengthy sentence sends an important message that we will continue vigorously to investigate and prosecute gang violence.”

As alleged in the Indictment and statements made in open court:

Woodycrime was a criminal enterprise involved in committing numerous acts of violence, including attempted murders and assaults, as well as drug dealing, in the Bronx.  Members and associates of Woodycrime engaged in violence to retaliate against rival gangs, to preserve and expand the gang’s territory, and to protect the gang’s narcotics business.  Members and associates of Woodycrime enriched themselves by selling drugs, such as crack cocaine, marijuana, oxycodone, and MDMA or “ecstasy.”  On June 6, 2018, GAMONEDA and others shot at a rival gang member in the vicinity of the Nelson Playground in the Bronx, during which two victims, including a 13-year-old child, were injured.

In addition to his prison term, MARVIN GAMONEDA, 34, of the Bronx, was sentenced to three years of supervised release.

Mr. Williams praised the outstanding investigative work of the New York City Police Department and the Federal Bureau of Investigation.

Governor Hochul Updates New Yorkers on State's Progress Combating COVID-19 - OCTOBER 14, 2021

 

58,526 Vaccine Doses Administered Over Last 24 Hours

40 COVID-19 Deaths Statewide Yesterday

 Governor Kathy Hochul today updated New Yorkers on the state's progress combating COVID-19.  

"As we look forward to the holiday season, it is important that New Yorkers remain vigilant in their fight against COVID," Governor Hochul said. "Wash your hands, wear a mask, get your flu shot and get your COVID vaccine if you haven't already - it's the best thing you can do to keep your community safe."

Today's data is summarized briefly below:

•         Test Results Reported - 200,032
•         Total Positive - 4,401
•         Percent Positive - 2.20%
•         7-Day Average Percent Positive - 2.52%
•         Patient Hospitalization - 2,105 (-4)
•         Patients Newly Admitted - 276
•         Patients in ICU - 460 (-4)
•         Patients in ICU with Intubation - 250 (-6)
•         Total Discharges - 204,365 (+272)
•         New deaths reported by healthcare facilities through HERDS - 40
•         Total deaths reported by healthcare facilities through HERDS - 45,015

The Health Electronic Response Data System is a NYS DOH data source that collects confirmed daily death data as reported by hospitals, nursing homes and adult care facilities only.

•        Total deaths reported to and compiled by the CDC - 57,288

This daily COVID-19 provisional death certificate data reported by NYS DOH and NYC to the CDC includes those who died in any location, including hospitals, nursing homes, adult care facilities, at home, in hospice and other settings.

•         Total vaccine doses administered - 26,090,625
•         Total vaccine doses administered over past 24 hours - 58,526
•         Total vaccine doses administered over past 7 days - 378,877
•         Percent of New Yorkers ages 18 and older with at least one vaccine dose - 82.9%
•         Percent of New Yorkers ages 18 and older with completed vaccine series - 75.0%
•         Percent of New Yorkers ages 18 and older with at least one vaccine dose (CDC) - 85.3%
•         Percent of New Yorkers ages 18 and older with completed vaccine series (CDC) - 76.5%
•         Percent of all New Yorkers with at least one vaccine dose - 70.2%
•         Percent of all New Yorkers with completed vaccine series - 63.4%
•         Percent of all New Yorkers with at least one vaccine dose (CDC) - 72.3%
•         Percent of all New Yorkers with completed vaccine series (CDC) - 64.7%

Former Godfather Of Black Stone Gorilla Gang Sentenced To 12 Years In Prison

 

 Damian Williams, the United States Attorney for the Southern District of New York, announced that MICHAEL DELAGUILA, a/k/a “Grizz,” was sentenced today to 12 years in prison in connection with his leadership of the Black Stone Gorilla Gang, a violent street gang that operated in New York City and elsewhere, and his participation in narcotics trafficking and firearms offenses.  On May 26, 2021, DELAGUILA pled guilty to narcotics conspiracy and a firearms offense before U.S. District Judge Jesse M. Furman, who also imposed today’s sentence.

U.S. Attorney Damian Williams said: “Michael Delaguila was one of the Godfathers of a notoriously violent and lawless gang that terrorized communities across New York City and elsewhere.  Delaguila recruited other individuals into the gang and authorized acts of violence and drug trafficking in New York City for years.  Today’s lengthy sentence sends an important message to gang members who commit crimes that they will be apprehended and prosecuted to the fullest extent of the law.”

As alleged in the Indictment and based on statements made in open court:

MICHAEL DELAGUILA, a/k/a “Grizz,” was previously one of the Godfathers of the Black Stone Gorilla Gang, a racketeering enterprise that operated principally in the New York City metropolitan area and in the jails and prisons of New York City and the State of New York.  In order to enrich the enterprise, preserve and protect the power of the enterprise, and enhance its criminal operations, BSGG members and associates committed, conspired, attempted, and threatened to commit acts of violence, including murder and assaults; distributed and possessed with intent to distribute narcotics; committed robberies; engaged in bank fraud and wire fraud; and obtained, possessed, and used firearms.  BSGG members also evaded prosecution by law enforcement authorities through acts of intimidation and violence against potential witnesses to crimes committed by the gang.  DELAGUILA accepted responsibility for participating in a conspiracy to distribute quantities of cocaine, heroin, and cocaine base, and for using and carrying firearms in furtherance of drug trafficking.  

In addition to his prison term, MICHAEL DELAGUILA, 30, of the Bronx, was sentenced to four years of supervised release.

Mr. Williams praised the outstanding investigative work of the New York City Police Department, the Drug Enforcement Administration, Homeland Security Investigations, the New York City Department of Corrections, and the Special Agents of the U.S. Attorney’s Office for the Southern District of New York.

Governor Hochul Continues Her Pledge to Afghan Evacuees by Opening Up Educational and Housing Opportunities While Assembling Local Partners to Provide Immediate Resources to Evacuees in Need

 

In Effort to Help Refugees Resettle in New York, Governor Hochul Announces SUNY to Open Educational Opportunity Centers to Refugees by Waiving the Residency Requirement for Admission In Order to Provide Free ESL Courses and Certifications to Connect Them to Local Job Opportunities

SUNY Buffalo State College Partners to Reserve Unused Dorm Space for Temporary Housing and Provides Excess Laptops On-Site

SUNY Working to Deliver Additional Computers in Order to Access Education Programs for Evacuees Across the State 

 Governor Kathy Hochul today announced partnerships and resources to provide a safe haven for Afghan evacuees in New York State, including educational resources and temporary housing to support evacuees as they seek to resettle in the United States.

"We can meet the challenges of today and tomorrow with compassion, imagination, and grit, and there are vast resources across the State to give the Afghan evacuees a solid start here in the United States," said Governor Hochul. "This is a call to action, to uphold our state's proud history of sheltering evacuees from persecution and violence. The arduous journey that thousands of Afghans have taken over the last few weeks is not the end, but rather the beginning of a new chapter that we can help them write." 

Believing in and encouraging the civic contributions immigrants bring to our society, The State University of New York will open its 10 Educational Opportunity Centers across New York State to refugees, waiving the New York State 1-year residency requirement for admission. Any evacuee can, and is encouraged to, apply for free courses, certificate and credentialing programs, and mentorship for seeking a post-secondary education and skills for job opportunities. SUNY is partnering with Rochester-based Keeping Our Promise, to develop courses specific to supporting this refugee population, such as an English as a Second Language course tailored for Dari, Farsi, and Pashto speakers. 

Collaboration among refugee resettlement providers and federal and state programs such as the U.S. Department of State's Afghan Placement and Assistance Program, the New York State Department of State's Office for New Americans, and the New York State Office of Temporary and Disability Assistance's Bureau of Refugee Services will be paramount to establishing a process to identify skills, training, talents, and backgrounds of individual refugees and build plans for their education, training needs, or licensure qualifications to support their entrance into New York's workforce. 

To assist with temporary housing needs, SUNY's campus at Buffalo State College has partnered with local agencies to reserve vacant dorm space for transitional housing for up to 100 evacuees. Buffalo State and SUNY will also provide excess laptops to Afghan evacuees on site to assist them to access educational programming. It is expected that any individual age 12 and up will be fully vaccinated against COVID-19 before arriving on Buffalo State's campus. The arrival and support of evacuees while temporarily residing at the college will be coordinated by Buffalo United for Afghan Refugees, a coalition of five Buffalo area organizations leading the region's resettlement efforts. 

SUNY is also working to give additional computers that are being rotated out of service to potential students, to help support resettlement of evacuees. These assets would be used to set up computer labs in libraries, resettlement offices, or locations across the state offering services for evacuees. 

The Office for New Americans also has a hotline that can connect immigrants and refugees to free services across the state. The Hotline can be reached at 1-800-566-7636 from 9:00 a.m. to 8:00 p.m., Monday through Friday, except holidays, with assistance available in more than 200 languages. 

The Office of Temporary and Disability Assistance is working with the federal Afghan Placement and Assistance providers to track arrivals of Afghan evacuees. Afghan evacuees can be served under the agency's programs for services such as employment assistance, cultural orientation and school acclimation just to name a few. 

SUNY Chancellor Jim Malatras said, "Public higher education empowers social mobility and social progress and it's part of our core mission to open our doors to individuals in need. The entire SUNY community thanks Governor Hochul for her leadership in opening New York's door to Afghan evacuees. We will do our part by providing high quality educational opportunities so they can be part of the American dream. We are made stronger by their stories and their heritage, and we welcome them with safety and opportunity." 

Buffalo State College President Katherine Conway-Turner said, "As a college committed to social justice, diversity, and inclusion, Buffalo State strives to be a steadying and compassionate force in a world riddled with chaos and injustice. We have made it part of our mission to reach out to local, national and global communities to help individuals from all backgrounds and ethnicities who may be suffering. Buffalo State thanks Governor Hochul and Chancellor Malatras for leading the way in New York State to welcome and support these individuals on their journey to a better life. We also thank Catholic Charities of Buffalo, the International Institute of Buffalo, Jericho Road Community Health Center, Jewish Family Services, and Journey's End Refugee Services for all of their efforts to welcome these cherished individuals to our region."  

Jennifer Rizzo-Choi, Interim Executive Director of the International Institute of Buffalo said, "We at the International Institute of Buffalo believe that New York State is made stronger by immigrants and refugees, and our mission is to resettle evacuees while providing them with safety, respect, dignity, education and employment opportunities. We thank Governor Kathy Hochul for welcoming the Afghan evacuees with open arms, and working with local partners such as IIB to usher in this incoming population and raise them up, giving them a new start."  

DEC ADVISES HOMEOWNERS TO CHECK FUEL OIL TANKS TO PREVENT LEAKS AND SPILLS

 

 The New York State Department of Environmental Conservation (DEC) today reminded homeowners that heating fuel oil storage tanks should be inspected for potential leaks or spills prior to receiving the first shipment of fuel oil for the upcoming heating season.

More than two million homes in New York are heated by fuel oil. Each year, the DEC Spills Hotline receives hundreds of reports of fuel oil spills from home heating oil tanks. These spills result in basement contamination, damage to basement contents, contamination of groundwater, wells, and soils, and expensive cleanups that are rarely covered by homeowner’s insurance.

Some of the most common causes of home fuel oil spills include: failing storage tanks; faulty fuel lines and connections; collapsing tank legs and supports; and overflows during delivery. Homeowners should consider using a company that offers a service contract to maintain tanks and heating systems. DEC also encourages homeowners to get their tank(s) inspected each year. An annual inspection can prevent impacts to human health and the environment from leaks and spills.

Homeowners are advised to look for the following concerns and contact their fuel oil service provider if they see any of the items from the lists below.

For above-ground heating fuel oils storage tanks, look for

• Bent, rusty, or wobbly tank legs or tank located on an unstable foundation;
• Signs of rust, weeps, wet spots, or many dents on the tank’s surface;
• Drips or any signs of leaks around the oil filter or valves;
• Fuel oil lines not covered in a protective casing – even if under concrete;
• Overhanging eaves where snow and ice could fall onto the tank;
• Stains on the ground or strong oil odor around the tank;
• Browning, dying, or loss of vegetation around the tank;
• Silent overfill whistle while tank is being filled – ask fuel delivery person;
• Fully or partially blocked tank vent from snow, ice, or insect nests;
• Signs of spills around fill pipe or vent pipe;
• Improperly sized vent pipes – ask fuel delivery person; and
• Cracked, stuck, or frozen fuel level gauges or signs of fuel around them.
  

For underground heating fuel oils storage tanks, look for:

• Water in the tank – ask fuel delivery person to check;
• Oil or oil sheen in your basement sump or French drain;
• Silent overfill whistle while tank is being filled – ask fuel delivery person;
• Fully or partially blocked tank vent from snow, ice, or insect nests;
• Signs of spills around fill pipe or vent pipe;
• Well water has strange tastes or smells;
• Complaints from neighbors of fuel oil smells; and
• Using more than normal amount of fuel.
  

Report any actual spill or leak of fuel oil to the DEC Spills Hotline at 1-800-457-7362. For more information on home heating oil tank stewardship, visit the Underground Heating Oil Tanks: A Homeowner's Guide webpage on DEC's website.

MAYOR DE BLASIO ANNOUNCES 50,000 BLOCKS HAND SWEPT BY THE CITY CLEANUP CORPS

 

Several Milestones Achieved in First Six Months of New Deal-Inspired Economic Recovery Program 

 Mayor Bill de Blasio today announced that the City Cleanup Corps has hand-swept over 50,000 blocks, among several milestones achieved within six months of the program’s launch.  

Since April 2021, Mayor de Blasio’s New Deal-inspired economic recovery program has also removed 600,000 bags of trash, hosted 400,000 work shifts, repainted 900 defaced properties, and cleaned 25,000 rain gardens, among efforts to revitalize and refresh public areas in neighborhoods across the five boroughs. 

“City Cleanup Corps was created not only as an opportunity to get hard-working New Yorkers back on their feet, but also to fortify our commitment to the City's neighborhoods and communities,” said Mayor Bill de Blasio. “With over 50,000 blocks cleaned, thousands of pounds of litter removed, and many other milestones met, City Cleanup Corps members are creating a clear, lasting impact that is being felt by New Yorkers and revitalizing the streets, parks, and public spaces that make our City great."  

“I congratulate the members of the City Cleanup Corps on reaching the milestone of 50,000 blocks hand-swept, among other milestones, as the Corps reaches its six-month anniversary,” said Deputy Mayor for Strategic Policy Initiatives Phil Thompson.  “The City Cleanup Corps is fostering an economic recovery by refreshing and revitalizing our city while also providing job opportunities for 10,000 New Yorkers.  The Corps will also help build a recovery for all of us by providing transformative career preparation opportunities for Corps members, who are predominantly from communities identified by the Task Force on Racial Inclusion and Equity.” 

 

“City Cleanup Corps members are helping to lead a ground-up economic recovery that prioritizes our communities and public spaces,” said the City's Senior Advisor for Recovery Lorraine Grillo. “In neighborhoods across the five boroughs—from Flushing and Bay Ridge to Brighton Beach, Pelham Parkway, and beyond—Corps members’ dedicated efforts are ensuring that New York City will recover from the pandemic stronger than ever.”

 

The New York City Cleanup Corps is revitalizing neighborhoods and public spaces across the five boroughs while creating 10,000 jobs for New York City residents. Jobs with flexible hours and competitive hourly rates are still available. Learn more and apply today at https://nyc.gov/ccc. Follow the City Cleanup Corps on Instagram and Facebook.

 

In response to Hurricane Ida, City Cleanup Corps members helped New Yorkers across the five boroughs clear debris from their residential properties damaged by the storm.

 

“The efforts of the City Cleanup Corps have been instrumental in storm cleanup, pandemic recovery and the revitalization of our city,” said Department of Sanitation Commissioner Edward Grayson. “On behalf of the nearly 10,000 NYC Sanitation employees who work hard to pick up 12,000 tons of residential refuse every day, I thank the City Cleanup Corps for their partnership in our shared mission of keeping our city clean and safe for all.”

 

“We are proud to work with NYC Cleanup Corps as they provide vital maintenance services to Open Streets locations, plazas, and other public spaces,” said Department of Transportation Commissioner Hank Gutman. “Public spaces make our communities vibrant, and we thank NYC Cleanup Corps for keeping them that way with daily maintenance services, horticultural care, and as public space ambassadors.”

 

"In just six months, the City's Cleanup Corps have proven to be an invaluable asset as we work towards recovery throughout the five boroughs, and especially in the neighborhoods hardest hit by the pandemic. Parks did its part and hired 3,200 of the 10,000 Cleanup Corps members and it proved to be a worthwhile investment. Over this past summer, they were instrumental in keeping our greenspaces clean and making our parks inviting spaces for New Yorkers and visitors alike to enjoy," said NYC Parks Commissioner Gabrielle Fialkoff. "As the CCC celebrates this milestone of hand sweeping 50,000 blocks, allow it to serve as a reminder of what we can achieve when we work together to beautify and preserve the communities we serve." 

 

“The City Cleanup Corps has been a terrific help in ensuring the City’s drainage infrastructure is operating as efficiently as possible,” said Department of Environmental Protection Commissioner Vincent Sapienza. “The Cleanup Corps has helped to clear trash and debris from catch basins and curbside rain gardens across the city. This is an important reminder that all New Yorkers can play a part in making New York a more livable city and support our drainage system by not littering on our streets.”

 

“DYCD and our funded community-based organizations are proud to be part of the City Cleanup Corps and its efforts to bring New York back from the COVID-19 pandemic and economic downturn. This is truly a win-win: the City’s hardest hit communities are being beautified one block at a time, and thousands of young people are benefiting from paid work, with an emphasis on high schoolers who need the most support and opportunities. DYCD looks forward to launching the new Work, Learn & Grow Environmental Corps in November, which will provide youth with work readiness, career exploration and training, with a focus on environmental justice and the City’s ongoing recovery,” said Department of Youth & Community Development Commissioner Bill Chong.

 

“New Yorkers continue to show their willingness to help their neighbors disaster after disaster. This is a testament to the spirit of resiliency and community throughout New York City. Programs like the New York City Cleanup Corps are a great complement to the emergency preparedness plans available to New Yorkers prior, during and after emergencies,” said Emergency Management Commissioner John Scrivani. “The response and outpouring of assistance for the residents impacted by the devastating floods due to Hurricane Ida is just another example of that sense of community.”

 

"The Cleanup Corps has allowed the Department of Probation and our Neighborhood Opportunity Network (NeON) to pay hundreds of young people to beautify and clean up New York City, giving back to their communities. We applaud our Corps members, who are from some of the neighborhoods hardest hit by Covid-19, for stepping up and being part of the recovery and rebuilding of New York City," said Department of Probation Commissioner Ana M. Bermúdez Esq.

 

“The NYPD is a proud government partner in the recovery efforts ongoing across all five boroughs of our city. Our dedicated men and women officers work tirelessly to support city residents in these cleanup efforts that are integral to our common good,” said Police Commissioner Dermot Shea.

 

"The amazing work of the City Cleanup Corps has played, and continues to play, a critical role in New York City's recovery efforts," said the Mayor's Office of Media and Entertainment Commissioner Anne del Castillo. "By creating clean spaces, and revitalizing communities hardest hit by the pandemic, we can welcome back locals and visitors alike to once again enjoy everything the greatest city in the world has to offer."

 

“The City Cleanup Corps team has been instrumental in helping revitalize the City’s hardest-hit neighborhoods and helping our immigrant communities get back on their feet after Ida,” said Mayor’s Office of Immigrant Affairs Commissioner Raquel Batista. “We congratulate the team on their milestones and encourage New Yorkers to be a part of this initiative and take full advantage of the current job opportunities.”

 

“We are proud of our CleaNYC and Graffiti Free NYC programs, which employ hardworking men and women and improve our neighborhoods and public spaces. Our continued economic recovery depends on providing New Yorkers with quality jobs, which programs like these create, while improving the quality of life for all New Yorkers,” said New York City Economic Development Corporation President and CEO Rachel Loeb.

 

“NYCHA campuses are interwoven throughout New York City, and the City Cleanup Corps Initiative plays an indispensable role in keeping our public spaces clean,” said NYCHA Chair & CEO Greg Russ. “Today’s milestone is a shining example of the transformations that can come when you engage residents in the sustainability and future of their communities.”

 

Four Defendants Charged In $7.6 Million COVID-19 Fraud Scheme

 

Defendants Allegedly Submitted More Than 1,000 Fraudulent Applications for U.S. Small Business Administration Economic Injury Disaster Loans

 Damian Williams, the United States Attorney for the Southern District of New York, Michael J. Driscoll, Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and Amaleka McCall-Brathwaite, Special Agent in Charge, U.S. Small Business Administration, Office of Inspector General (“SBA-OIG”), announced today the unsealing of a complaint charging JACOB CARTER, QUADRI SALAHUDDIN, ANWAR SALAHUDDIN, and CHRISTAL RANSOM with conspiracy to commit wire fraud, wire fraud, false statements, and aggravated identity theft in connection with a scheme to defraud the U.S. Small Business Administration (“SBA”), resulting in a loss to the SBA of more than $7.6 million.  The defendants were arrested this morning.  QUADRI SALAHUDDIN and ANWAR SALAHUDDIN will be presented this afternoon before United States Magistrate Judge Andrew E. Krause in White Plains federal court.  JACOB CARTER will be presented this afternoon in the United States District Court for the Northern District of Texas.  CHRISTAL RANSOM will be presented later today in the United States District Court for the Central District of California.

U.S. Attorney Damian Williams said: “As alleged, the defendants schemed to steal taxpayer-funded resources intended for small businesses in need of assistance during the pandemic.  My Office will continue to investigate and prosecute those who would illegally seek to profit from a national emergency.”   

FBI Assistant Michael J. Driscoll said: “Today’s defendants have become the latest in line to be charged for SBA loan fraud as a result of their alleged conduct during the COVID-19 pandemic. As this behavior continues to be uncovered, the FBI will continue to respond to illegal activity with appropriate legal action.”

As alleged in the Complaint:[1]

The SBA is a federal agency of the Executive Branch that administers assistance to American small businesses.  This assistance includes making direct loans to applicants through the Economic Injury Disaster Loan (“EIDL”) Program.  In response to the COVID-19 pandemic, Congress expanded SBA’s EIDL Program to provide small businesses with low-interest loans of up to $2 million prior to in or about May 2020 and up to $150,000 beginning in or about May 2020, in order to provide vital economic support to help overcome the loss of revenue small businesses are experiencing due to COVID-19.  Applicants seeking a loan under the EIDL program were also now permitted to request and receive an advance of approximately $1,000 per employee, for an amount up to $10,000, which the SBA has generally provided while the loan application was pending.

From March through July 2020, JACOB CARTER, QUADRI SALAHUDDIN, ANWAR SALAHUDDIN, and CHRISTAL RANSOM used the identities of more than 1,000 other individuals (the “Applicants”) to submit more than 1,000 online applications to the SBA, seeking over $10 million of funds through the SBA’s EIDL Program.  (the “EIDL Applications”).  In connection with the EIDL Applications, CARTER, QUADRI SALAHUDDIN, ANWAR SALAHUDDIN, and RANSOM falsely represented to the SBA, among other things, that the Applicants were the owners of businesses with 10 or more employees.  Based on the fraudulent EIDL Applications, the SBA made advance payments of more than $7.6 million to the Applicants, who often then kicked back a portion of the advance payments to CARTER, QUADRI SALAHUDDIN, ANWAR SALAHUDDIN, and RANSOM.

JACOB CARTER, 35, of Capitol Heights, Maryland, QUADRI SALAHUDDIN, 25, and ANWAR SALAHUDDIN, 35, of Mount Vernon, New York, and CHRISTAL RANSOM, 44, of Los Angeles, California, are each charged with (1) conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison, (2) wire fraud, which carries a maximum sentence of 20 years in prison, (3) false statements, which carries a maximum sentence of five years in prison, and (4) aggravated identity theft, which carries a mandatory two-year consecutive sentence.   

The maximum potential sentences in these cases are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.

Mr. Williams praised the outstanding work of the FBI and the SBA-OIG.

The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitutes only allegations, and every fact described therein should be treated as an allegation.