CAMDEN, N.J. – A significant fraud scheme involving federal Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDL) has been discovered, leading to the charge of five individuals, U.S. Attorney Philip R. Sellinger announced. Two others have pleaded guilty to fraudulent involvement in PPP and EIDL loans.
Eric Rivera, Lisa Smith, Sieff Robert Sargeant, Adrienne Ponzo, and James Wessels have all been charged in connection with the fraudulent scheme. The individuals, with ages ranging from 43 to 60 and residing in states across the country, are accused of various counts of conspiracy to commit bank fraud, wire fraud, and money laundering.
According to criminal complaints, the individuals involved in the scheme are alleged to have submitted fraudulent applications for PPP and EIDL loans using false information.
The fraudulent applications were for businesses with minimal operations, employees, revenues, and profits. Rivera received payments of 15 to 50 percent of the loan proceeds for orchestrating this scheme.
Yasha Barjona and William Ingram, who pleaded guilty earlier this month, also played a role in the scheme, involving their own businesses and receiving loan proceeds. The proceeds were then split with Rivera. Ingram and Barjona are set for sentencing on Nov. 7, and Nov. 15, respectively.