NEWARK, N.J. (1010 WINS) – Three reputed gang members are among the six New Jersey residents who were arrested for scheming to fraudulently obtain Paycheck Protection Program (PPP) loans for over $60,000, the Department of Justice announced.
Nyan Terry, 23, of Irvington, Samir Jefferson, 23, of Newark, and Nasir Williams, 29 of East Orange were members of the “Sex Money Murder” sect of the Bloods street gang, according to charging documents. The other three defendants include Brian Brown, 40, and Cadece Lapread, 35, and Hymen Reynolds, 21, of East Orange.
During the pandemic, the Coronavirus Aid, Relief, and Economic Security (CARES) Act authorized hundreds of billions of dollars in forgivable loans to small businesses for job retention and certain other expenses, through the PPP.
The six defendants, in April and May 2021, submitted fraudulent PPP loan applications in the names of nonexistent small businesses, along with forged tax forms, according to the investigation.
Lenders approved at least three fraudulent PPP loans and gave more than $62,000 in federal COVID-19 emergency relief funds.
The counts of bank fraud and conspiracy each carry up to 30 years in prison and a maximum fine of a million dollars.
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