Six Essex County residents charged with loan fraud

NEWARK, NJ — Six Essex County residents were arrested on July 7 for scheming to fraudulently obtain Paycheck Protection Program loans, U.S. Attorney Philip R. Sellinger announced.

Nyan Terry, aka “Racks,” 23, of Irvington; Samir Jefferson, aka “Tank Jeffe,” 23, of Newark; and Nasir Williams, aka “Harlem Pete,” 29, Hymeen Reynolds, aka “Meen,” 21, Brian Brown, aka “Bizz,” 40, and Cadece Lapread, 35, all of East Orange, are each charged by complaint with one count of bank fraud. Terry, Reynolds, Brown, Lapread and Jefferson are also charged with one count each of bank fraud conspiracy. The defendants made their initial appearances on July 7 before U.S. Magistrate Judge Jessica S. Allen; Terry was detained and the other defendants were released on $20,000 each unsecured bond.

The Coronavirus Aid, Relief, and Economic Security Act, a federal law enacted in March 2020, authorized hundreds of billions of dollars in forgivable loans to small businesses for job retention and certain other expenses, through the PPP.

According to documents filed in this case and statements made in court, in April and May 2021, the six individuals schemed to defraud PPP lenders by submitting fraudulent PPP loan applications in the names of nonexistent small businesses, along with forged tax forms. Based on the defendants’ misrepresentations, lenders approved at least three fraudulent PPP loans and disbursed more than $62,000 in federal COVID-19 emergency relief funds.

The counts of bank fraud and bank fraud conspiracy each carry a maximum penalty of 30 years in prison and a maximum fine of $1 million.

The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proved guilty.

  Arrests, COVID-19, Fraud, U.S. Attorney’s Office