Pennsylvania man charged with $1.7 million Paycheck Protection Program loan fraud scheme | USAO-NJ
NEWARK, NJ – A Pennsylvania man has been charged for his role in a scheme to fraudulently obtain more than $1.7 million in federal Paycheck Protection Program (PPP) loans for himself and others. others, US Attorney Philip R. Sellinger announced today.
Darryl Duanne Young, aka “Darryl Duanne Isom Young”, 59, of Kingston, Pennsylvania, is charged by complaint with one count of conspiracy to commit bank fraud, four counts of bank fraud and two counts of money laundering silver. Young made his first appearance via video link this afternoon before U.S. Magistrate Judge Cathy L. Waldor and was released on an unsecured bond of $150,000.
According to documents filed in this case and statements made in court:
The CARES Act (Coronavirus Aid, Relief, and Economic Security) is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to millions of Americans suffering from the economic effects caused by the COVID-19 pandemic. The act authorized up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
Young engaged in a scheme to illegally obtain for himself and his conspirators more than $1.7 million in PPP loans through numerous false statements to banks. Young submitted and ordered others to submit fraudulent PPP loan applications. He submitted falsified tax documents and bank statements to a victimized lender in support of PPP loan applications. He received over $230,000 in PPP loans for businesses he controlled and received a percentage of the loan proceeds for helping submit fraudulent claims on behalf of others.
The counts of conspiracy to commit bank fraud and bank fraud each carry a maximum sentence of 30 years in prison and a fine of $1 million. The money laundering counts each carry a potential maximum sentence of 10 years in prison and a maximum fine of $250,000 or double the gross gain for the defendant or the gross loss for the victim, whichever is greater.
U.S. Attorney Sellinger credited IRS-Criminal Investigation Special Agents, under Acting Special Agent in Charge Tammy Tomlins; postal inspectors from the US Postal Inspection Service in Newark, under Inspector in Charge Damon Wood, Philadelphia Division; Special Agents of the Social Security Administration, Office of Inspector General, under Special Agent in Charge Sharon MacDermott; Special Agents of the United States Attorney’s Office for the District of New Jersey, under the direction of Special Agent in Charge Thomas Mahoney; Special Agents of the Board of Governors of the Office of Consumer Financial Protection of the Federal Reserve System, Office of the Inspector General, under the direction of Special Agent in Charge Stephen Donnelly; Federal Housing Finance Agency Special Agents, Office of Inspector General, under Special Agent in Charge Robert Manchak; Federal Deposit Insurance Corporation Special Agents – Office of Inspector General, under Special Agent in Charge Patricia Tarasca in New York; and special agents from the Department of Homeland Security, Homeland Security Investigations, under Jason J. Molina in Newark, the investigation leading to the charges.
The government is represented by Assistant United States Attorneys Katherine M. Romano and David E. Dauenheimer of the Health Care Fraud Unit of the United States Attorney’s Office in Newark.
Anyone with information about alleged attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Disaster Fraud Center hotline at 866-720 -5721 or through the NCDF’s online complaint form at: https://www.justice. gov/disaster-fraud/ncdf-disaster-complaint-form.
The charges and allegations contained in the Complaint are charges only, and the Defendant is presumed innocent until proven guilty.