Six Family Members Indicted in PPP Loan Fraud Conspiracy, Two Also Charged with Pandemic Unemployment Benefits Theft

 

Defendants Allegedly Used Fake Businesses and False Records to Obtain More Than $166,000 in COVID-Relief Funds

Brooklyn District Attorney Eric Gonzalez, together with New York State Inspector General Lucy Lang, today announced that six individuals — all members of the same family — have been indicted for allegedly conspiring to steal more than $166,000 in federal COVID-19 relief funds through fraudulent applications for Paycheck Protection Program (PPP) loans and other pandemic aid. The defendants are accused of submitting fraudulent loan applications and forgiveness requests for fictitious businesses between April 2021 and October 2022.

District Attorney Gonzalez said, “Pandemic relief programs were created to help small businesses and workers survive an unprecedented crisis. We allege these defendants abused that system for personal gain by inventing companies and falsifying records. My office is committed to protecting taxpayer funds and holding accountable anyone who exploits public relief programs.”

Inspector General Lang said, “The Paycheck Protection Program and unemployment assistance were designed as lifelines for New Yorkers during some of our darkest days. Stealing Covid-era public funds for personal gain is an affront to all who suffered. I thank District Attorney Gonzalez, his team, and my outstanding staff for our shared commitment to safeguarding the integrity of resources meant for our most vulnerable families and small businesses.”

The District Attorney identified the defendants as Karima Branche, 46, of Brooklyn; Faye Wilkie-Fields, 68, of Brooklyn; Wilworth Branche, 70, of Georgia; Carol Horton, 68, of Brooklyn; Monique Horton, 38, of Brooklyn; and Paul Neufville, 41, of Florida. They are variously charged in a 23-count indictment with fourth-degree conspiracy, second-degree grand larceny, 11 counts of third-degree grand larceny, two counts of fourth-degree grand larceny, seven counts of first-degree falsifying business records and one count of third-degree attempted grand larceny. They were arraigned today in front of Brooklyn Supreme Court Justice Eugene Guarino, who ordered the defendants released without bail and to return to court on January 28, 2026.

In addition to the PPP loan fraud charges, Karima Branche is charged with third-degree grand larceny related to an Economic Injury Disaster Loan (EIDL) advance. Wilkie-Fields is charged with attempted third-degree grand larceny related to an EIDL advance. Carol Horton and Monique Horton are also charged with third- and fourth-degree grand larceny for allegedly fraudulently obtaining Pandemic Unemployment Assistance benefits from the New York State Department of Labor.

The District Attorney said that, according to the evidence, between April 2021 and October 2022, the defendants allegedly acted together to file multiple fraudulent PPP loan applications containing nearly identical financial information. Each claimed to operate a self-employed business, ranging from educational services to retail to marketing and consulting, and all submitted falsified tax forms listing identical expense categories and expense amounts.

The loan applications and forgiveness requests were allegedly filed from two IP addresses linked to Neufville. Relying on these submissions, lenders disbursed federally backed funds guaranteed by the U.S. Small Business Administration.

The defendants allegedly received a total of $166,664 in PPP loan proceeds.

     • Karima Branche allegedly obtained two loans for $20,833 each from Benworth Capital Partners, LLC.

     • Faye Wilkie-Fields allegedly received a $20,883 loan from Benworth Capital Partners, LLC.

     • Wilworth Branche allegedly received two loans of $20,833 each, one from Benworth Capital Partners, LLC and another from Capital Plus Financial, LLC.

     • Carol Horton allegedly obtained two $20,833 loans, from Harvest Small Business Finance, LLC and Capital Plus Finance, LLC.

     • Monique Horton allegedly received a $20,833 loan from Harvest Small Business Finance, LLC.

The investigation further revealed that Neufville allegedly coordinated the applications and received payments from several co-defendants ranging from $500 to $2,500 marked for “services.” Investigators found that the defendants later submitted loan forgiveness applications claiming at least 60 percent of proceeds were used for payroll.

The District Attorney thanked the New York State Inspector General’s Office, the U.S. Department of Labor, the U.S. Small Business Administration, the New York State Department of Labor, the Office of the Inspector General for the U.S. Social Security Administration, Homeland Security Investigations, the New York State Department of Taxation and Amtrak Office of the Inspector General for their assistance in the investigation.

An indictment is an accusatory instrument and not proof of a defendant’s guilt.

President of Insurance Brokerage Firm and CEO of Marketing Company Convicted in $233M Affordable Care Act Enrollment Fraud Scheme

 

A federal jury in West Palm Beach, Florida, convicted a President of an insurance brokerage firm and a CEO of a marketing company for their roles in a years-long scheme to submit fraudulent enrollments to fully subsidized Affordable Care Act (ACA) insurance plans in order to obtain millions of dollars in commission payments from insurance companies.

According to court documents and evidence presented at trial, Cory Lloyd, 46, of Stuart, Florida, and Steven Strong, 42, of Mansfield, Texas, engaged in an extensive fraud scheme that sought over $233 million in fraudulent ACA plan subsidies for which the federal government paid at least $180 million. ACA plans offer tax credits to eligible enrollees. These tax credits, or “subsidies,” are paid by the federal government directly to insurance companies in the form of a payment toward the applicable monthly premium. Evidence presented at trial showed that Lloyd and Strong conspired to enroll consumers in ACA plans that were fully subsidized by the federal government by submitting false and fraudulent applications for individuals whose income did not meet the minimum requirements to be eligible for the subsidies. Lloyd received commission and other payments from an insurance company in exchange for enrolling consumers in the ACA plans. In turn, Lloyd paid commissions to Strong in exchange for consumer referrals.

“These defendants exploited a health care safety net designed for working families to carry out a $233 million scheme to defraud taxpayers,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division. “The defendants took advantage of vulnerable people, including people experiencing homelessness, drug addictions, and mental health disorders, in order to make millions of dollars. The Department of Justice takes such conduct seriously and will continue to hold criminals accountable who seek to steal taxpayer dollars by exploiting vulnerable people and endangering the health and safety of our communities.”

“Health care fraud is nothing new to South Florida as many scammers see this as a way to earn easy, though illegal, money,” said Special Agent in Charge Brett Skiles of the FBI Miami Field Office. “What is disturbing about this investigation is that the subjects deliberately targeted the most vulnerable — low-income citizens experiencing homelessness, unemployment and even mental health and substance abuse issues. All to line their own pockets with ill-gotten gains. The investigators who unraveled this scam are to be commended for their diligence and commitment. The FBI and our partners will continue to pursue those individuals who defraud our health care system at the expense of taxpayers.”

“The ACA marketplace is not a playground for fraudsters,” said Deputy Inspector General for Investigations Christian J. Schrank of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “This $230 million dollar subsidies scheme was built on deception, targeting vulnerable individuals and manipulating the system for personal gain. HHS-OIG will continue to relentlessly pursue those who exploit enrollees and undermine public trust, using every tool at our disposal to prevent health care fraud.”

“This was not just a financial crime — it was a moral failure,” said Special Agent in Charge Ronald A. Loecker of the IRS Criminal Investigation (IRS-CI) Florida Field Office. “Cory Lloyd and Steven Strong deliberately targeted the homeless and mentally ill to enrich themselves, which is unconscionable. IRS-CI will continue to work with our law enforcement partners to ensure that those who exploit others and defraud the government face justice.”

As proven at trial, Lloyd and Strong targeted vulnerable, low-income individuals experiencing homelessness, unemployment, and mental health and substance abuse disorders, and, through “street marketers” working on their behalf, sometimes offered bribes to induce those individuals to enroll in subsidized ACA plans. Marketers working for Strong’s company coached consumers on how to respond to application questions to maximize the subsidy amount and provided addresses and social security numbers that did not match the consumers purportedly applying. As a result of being enrolled in subsidized ACA plans for which they did not qualify, some of these consumers experienced serious disruptions in their medical care and often lost their prior insurance coverage under Medicaid or other programs.

The evidence at trial further showed that Lloyd and Strong engaged in the scheme to maximize the commission payments they received from insurers, resulting in their companies’ receiving millions of dollars in commissions. Lloyd and Strong used misleading sales scripts and other deceptive sales techniques to convince consumers to state that they would attempt to earn the minimum income necessary to qualify for a subsidized ACA plan, even when the consumer initially stated to insurance agents that they had no income. Lloyd and Strong also conspired to bypass the federal government’s attempts to verify income and other information and deliberately submitted applications to Medicaid for various individuals in a way that guaranteed their denial so that they could sign up these same consumers for a fully subsidized ACA plan outside of the open enrollment period and therefore maximize their commissions year-round.  Finally, evidence presented at trial showed that the defendants financed the purchase of luxury homes and vehicles with fraud proceeds from this scheme.

Lloyd and Strong were both convicted of one count of conspiracy to commit wire fraud, three counts of wire fraud, and one count of conspiracy to defraud the United States.  Steven Strong was also convicted of two counts of money laundering. Each defendant faces a maximum penalty of 20 years in prison for their conviction of conspiracy to commit wire fraud, 20 years in prison for each substantive count of wire fraud, and five years in prison for conspiracy to defraud the United States. Steven Strong faces a maximum of 10 years in prison for each count of money laundering. Sentencings are set for Feb. 4, 2026.  A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

FBI, HHS-OIG, and IRS-CI are investigating the case.

Assistant Chief Jamie de Boer and Trial Attorney D. Keith Clouser of the Criminal Division’s Fraud Section are prosecuting the case.

The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of 15 strike forces operating in 25 federal districts, has charged more than 5,000 defendants who collectively have billed federal health care programs and private insurers more than $24 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.

Governor Hochul Announces Completion of Landmark $1.7 Billion Hunts Point Access Improvement Project, Strengthening The Community in the South Bronx

Unprecedented State Investment Transformed South Bronx, Reconnected Neighborhoods and Streamlined Access to Hunts Point Terminal Market

Reimagined Road Network Now Takes Thousands of Trucks Off Local Street Network, Enhances Safety and Reduces Congestion and Vehicle Emissions

Provides New Access to Bronx River Waterfront and Green Spaces for Recreation

Governor Kathy Hochul announced that work has been completed on the third and final phase of the transformative $1.7 billion Hunts Point Access Improvement Project — the final milestone in the transformation of the South Bronx that has strengthened neighborhoods, improved mobility and provided new recreational opportunities and access to green space. Overseen by the New York State Department of Transportation, the six-year project streamlined access to the Hunts Point Market and directed thousands of heavy commercial vehicles away from neighborhood streets to ease congestion, enhance safety and improve air quality by reducing vehicle emissions. At the same time, the project also created new shared-use paths and provided new connections to area parks and the Bronx River waterfront that will strengthen communities and improve quality of life. This level of investment is a game changer in the South Bronx, restoring east-west connections throughout the borough that were not in place before the initiation of the project.

“For far too long, residents of the South Bronx have contended with heavy truck traffic in their neighborhoods and all the problems that resulted, including high asthma rates and poor health outcomes,” Governor Hochul said. “Thanks to this project we have taken thousands of trucks headed to the Hunts Point Market off local streets every day and added further fuel to the growing resurgence of the South Bronx with less congested streets, cleaner air and exiting new recreational opportunities along the Bronx River waterfront.”

The Hunts Point Market is the nation’s largest food distribution center and plays a vital role in New York City’s food chain, supplying more than 60 percent of its meat, fish and produce. It is also a vital economic engine for the Bronx, generating more than $2 billion in annual economic activity. The project created direct access to Hunts Point from both the Bruckner Expressway and Sheridan Boulevard, removing tens of thousands of commercial vehicles from local streets and alleviating congestion. It was accomplished in three overlapping phases and completed under-budget.

Phase one, which concluded in October of 2022, focused on removing heavy truck traffic from local streets by constructing three new ramps to Edgewater Road. These included a new two-way ramp from Sheridan Boulevard and a connection from the eastbound Bruckner Expressway. Edgewater Road was also resurfaced and outfitted with new traffic signals at Seneca and Garrison Avenues to enhance safety. Additionally, four bridges over Amtrak and CSX rail lines were replaced and the Bryant Avenue pedestrian bridge was reconstructed.

Garrison Park was also upgraded with new landscaping, Bronx River overlooks and a formal entrance featuring a signalized rail crossing. A new shared-use path was created to connect Garrison Park with Concrete Plant Park, extending the Bronx River Greenway. Another 15,000 square feet of “Bronx River Open Space” was also created beneath the rehabilitated Bronx River Avenue viaduct for residents to enjoy.

The second phase, which ended in the summer of 2023, reconstructed 1.25 miles of the Bruckner Expressway and created new ramps linking the westbound Bruckner to Leggett Avenue, providing a more direct route into Hunts Point. A 1.75-mile stretch of Bruckner Boulevard was reconstructed with fifteen intersections, which were upgraded with new sidewalks, curbs, medians and crosswalks. A 1.5-mile shared-use path was added along Bruckner Boulevard that connects to Randall’s Island, Manhattan and the Bronx River Greenway.

The third phase began in late 2022 and focused on eliminating long-standing bottlenecks and preparing the corridor for the future. The Bruckner Expressway and Sheridan Boulevard interchange was completely reconstructed with relocated ramps to simplify traffic movements in each direction. Signage was also upgraded for greater clarity. New pavement, sidewalks and bikeways were installed along the eastbound and westbound Bruckner Boulevard. Improved local street design will enhance pedestrian safety with shorter crosswalks and better signalization and lighting. A shared-use path was added to connect paths from 141st Street to the Bronx River bikeways.

For more information, find us on Facebook, follow us on X, the Long Island region on X, or Instagram, or visit our website. For up-to-date travel information, call 511, visit www.511NY.org or download the free 511NY mobile app.

INTERNATIONAL TRAVEL ADVISORY FOR MAYOR ERIC ADAMS

 

On Tuesday, November 18, New York City Mayor Eric Adams will travel to Uzbekistan for a multi-day trip to meet with government, business, tech, sports, and religious leaders to discuss how New York City can partner with Uzbekistan to bring innovation, businesses, and jobs to the five boroughs. The mayor will also visit religious sites of importance to the Muslim community.  

  

The mayor will visit the cities of Tashkent and Samarkand, and he will travel back to New York City on Sunday, November 23.   

  

More details on the trip will be forthcoming. 

ICE Lodges Arrest Detainer for Illegal Alien Who Attacked Innocent Woman in Plano, Texas with a Hammer

 

The illegal alien was released into the country by the Biden administration in 2024

U.S. Immigration and Customs Enforcement (ICE) lodged an arrest detainer for Sergio Noe de Nova Duarte, an illegal alien from Mexico, who attacked an innocent woman jogging in Bob Woodruff Park in Plano with a hammer.

On November 13, Plano Police Department charged him with aggravated kidnapping and bodily injury. ICE lodged an arrest detainer on him with the Collin County Jail to ensure he is not released back into American communities.

Sergio Noe de Nova Duarte has a lengthy rap sheet including previous arrests in 2024 for burglary and larceny. Following his arrest in 2024, ICE apprehended this criminal illegal alien, and the Biden administration released him into the country with a notice to appear before an immigration judge in 2026.

“This criminal illegal alien should have never been loose in our communities to attack this woman jogging in a park with a hammer,” said Assistant Secretary Tricia McLaughlin. “Following this illegal alien’s arrest in 2024, the Biden administration released this criminal illegal alien back into our communities. Under President Trump and Secretary Noem, ICE lodged an arrest detainer to ensure this criminal illegal alien is NEVER able to prey on innocent women in our country again.”

Sergio Noe de Nova Duarte entered the U.S. on a B2 tourist visa in 2016. This visa required him to depart the U.S. by September 17, 2016.

DEA Rocky Mountain Seizes Record 1.7 Million Counterfeit Fentanyl Pills in Colorado, Sixth-Largest U.S. Pill Seizure

 

The Drug Enforcement Administration’s Rocky Mountain Field Division (RMFD) has announced the seizure of approximately 1.7 million counterfeit fentanyl pills from a storage facility in the Denver suburb of Highlands Ranch. 

This is the largest one-time seizure of counterfeit pills in Colorado history, and the sixth-largest, single seizure of suspected fentanyl pills in United States history.

“This played out like an episode of a TV show, where a winning bidder legally bought a storage unit and unbeknownst to them, the unit contained 1.7 million counterfeit fentanyl pills and another 12 kilograms of fentanyl powder,” said DEA Rocky Mountain Field Division Special Agent in Charge David Olesky. “There is no doubt many lives have been saved by keeping these poison pills of the streets of Colorado.”

Upon noticing the contents of the storage unit, the bidder immediately contacted the Douglas County Sheriff’s Office.

“I want to thank the citizen who reported this discovery, the storage facility staff for their cooperation, and the deputies who responded quickly and professionally,” said Douglas County Sheriff Darren Weekly. “Let me send a strong and unmistakable message: fentanyl and illegal narcotics will not be tolerated in Douglas County. Our deputies, detectives, and crime lab professionals are committed to keeping this community safe, and we will remain relentless in that mission.” 

The record seizure is connected with an ongoing DEA and Colorado Bureau of Investigation case. The registered owner of the storage unit is already in federal custody.

“The seizure of these drugs represents countless lives saved, as these dangerous substances will never reach our communities. Our mission to get drugs off the streets and put traffickers behind bars remains as vital as ever,” Colorado Bureau of Investigation Director Armando Saldate stated. 

In addition to the 1.7 million pills, the 12 kilograms of powder seized had the potential to yield up to an additional six million pills.

Colorado Governor Jared Polis praised the hard work of federal, state, and local law enforcement.

“I want to thank everyone who helped us with the largest successful fentanyl seizure in Colorado history. Getting more of this deadly drug off the streets saves lives. In Colorado, we are cracking down on crime, apprehending dangerous criminals, and keeping our communities safe. I thank the Colorado Bureau of Investigation and our federal partners for working with us to get criminals off of Colorado streets, out of our communities, and ensure Coloradans and families are safe,” said Governor Polis.

Due to the ongoing investigation, no further updates are planned at this time.

1.7 million suspected fentanyl pills and kilos of fentanyl powder seized in Highlands Ranch, CO

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Joint Statement from Speaker Adrienne Adams and Finance Chair Justin Brannan on the Fiscal Year 2026 November Plan

 

“As forecasted by the Council, New York City’s economy continues to see steady growth. The Council’s revenue projections have been consistently substantiated by the mayoral administration’s financial plans, which is once again the case in this November Plan. As our school communities continue to deal with changes in enrollment, it’s critical the Administration maintains investments to keep individual school budgets steady and ensure appropriate resources serve students.

“For the past several years, the NYPD has experienced hiring and attrition issues, caused by and producing management challenges, excessive forced overtime, and strains on officers’ quality of work life. An outgoing mayor placing tens of millions of dollars into outyear expense budgets for headcount, without any meaningful plan to address current workforce challenges, is not reflective of responsible budgeting. This only adds to growing outyear budget gaps and will leave taxpayer dollars sitting unused in the NYPD’s headcount budget when they could be used for New Yorkers’ pressing needs. The Council will review the November Plan to ensure that we deliver what all New Yorkers across our city need to thrive.”

Maryland Man Pleads Guilty to Mailing Threatening Communications to Jewish Institutions and Civil Rights Violations

The Department of Justice announced that Clift Seferlis, 55, of Garrett Park, Maryland, entered a plea of guilty today before U.S. District Judge Mark A. Kearney on 17 counts of mailing threatening communications and eight counts of obstruction of free exercise of religious beliefs, arising from numerous threats sent to Jewish organizations and entities.

Seferlis was charged with those offenses by information last month, following his arrest in June on a criminal complaint and warrant in connection with such threats.

As presented in court filings and admitted to by the defendant, from at least March 2024 through at least June 2025, Seferlis used the United States mail to transmit at least 40 letters and at least two postcards to more than 25 Jewish organizations and entities located in multiple jurisdictions, including, but not limited to, synagogues, Jewish museums, Jewish community centers, Jewish schools, Jewish non-profit organizations, and a Jewish delicatessen. In many of these letters and postcards, Seferlis threatened to destroy physical buildings and/or to injure individuals.

Specifically, Seferlis caused the U.S. Postal Service (USPS) to deliver threatening communications to these institutions on or about the following dates:

• Jewish Institution 1, a synagogue in Washington, D.C.
  • (March 6, 2024; January 24, 2025)
• Jewish Institution 2, an entity in Philadelphia, Pennsylvania
  • (April 4, 2024; July 29, 2024; January 18, 2025; March 5, 2025; May 7, 2025; May 9, 2025)
• Jewish Institution 3, an entity in Fairfax, Virginia
  • (January 18, 2025)
• Jewish Institution 4, a synagogue in Gaithersburg, Maryland
  • (February 3, 2025)
• Jewish Institution 5, an entity in Fairfax, Virginia
  • (February 7, 2025)
• Jewish Institution 6, a synagogue in Hagerstown, Maryland
  • (March 2025)
• Jewish Institution 7, an entity in Rockville, Maryland
  • (May 12, 2025)
• Jewish Institution 8, an entity in Washington, D.C.
  • (May 29, 2025; June 3, 2025)
• Jewish Institution 9, an entity in Washington, D.C.
  • (June 3, 2025)
• Jewish Institution 10, a synagogue in Brookline, Massachusetts
  • (June 3, 2025)

Each communication listed above contained a threat to injure the occupants of the receiving institution.

As court filings further detail, the defendant, by threat of force, intentionally obstructed and attempted to obstruct congregants and other attendees in the enjoyment of their free exercise of religious beliefs, by threatening to harm the occupants of:

• Jewish Institution 1, a synagogue in Washington, D.C.
  • (March 6, 2024; January 24, 2025)
• Jewish Institution 11, a synagogue in Rockville, Maryland
  • (January 25, 2025)
• Jewish Institution 12, a synagogue in Falls Church, Virginia
  • (January 31, 2025)
• Jewish Institution 13, a synagogue in Gaithersburg, Maryland
  • (February 3, 2025)
• Jewish Institution 14, a synagogue in Washington, D.C.
  • (February 10, 2025)
• Jewish Institution 15, a synagogue in Hagerstown, Maryland
  • (March 2025)
• Jewish Institution 16, a synagogue in Brookline, Massachusetts
  • (June 3, 2025)

Further, the offenses against Jewish Institution 12, Jewish Institution 13, Jewish Institution 14, and Jewish Institution 15 included the threatened use of a dangerous weapon, fire, or explosives.

Seferlis waived venue as to those institutions and synagogues not in the Eastern District of Pennsylvania and agreed to be charged in this District.

Seferlis is scheduled to be sentenced on March 16. He faces a maximum penalty of 169 years in prison, three years of supervised release, and a $5,650,000 fine.

This case was investigated by FBI Philadelphia, with assistance from FBI Baltimore, the U.S. Postal Inspection Service, the Montgomery County (Md.) Police Department, and the United States Attorney’s Office for the District of Maryland’s Greenbelt office. The Anti-Defamation League, Secure Community Network, and Delaware Valley Intelligence Center also provided assistance with this case. The case is being prosecuted by Assistant U.S Attorney Mark Dubnoff for the Eastern District of Pennsylvania and Trial Attorney Taylor Payne of the Justice Department’s Civil Rights Division.