Federal authorities in New Jersey say Kingston’s Darryl Duanne Young has been charged for his role in a scheme to fraudulently obtain more than $1.7 million in federal Paycheck Protection Program loans for himself. and others.
U.S. Attorney Philip Sellinger said Young, 59, who also resided in East Orange, NJ, faces charges of conspiracy to commit bank fraud, bank fraud and money laundering. Young, also known as Darryl Duanne Isom Young, appeared by videoconference on Tuesday before U.S. Magistrate Cathy Waldor and was released on an unsecured bond of $150,000.
In a press release, federal authorities said the complaint and court testimony indicated: Young engaged in a scheme to illegally obtain PPP loans for himself and his conspirators through numerous false statements to banks. Young submitted and directed others to submit fraudulent loan applications. He submitted falsified tax documents and bank statements to a victimized lender in support of loan applications. He received over $230,000 in loans for businesses he controlled and received a percentage of the loan proceeds for helping submit fraudulent claims on behalf of others.
Up to $349 billion in repayable PPP loans have been authorized under the Coronavirus Aid, Relief, and Economic Security or CARES Act in 2020 to provide emergency financial assistance to millions of Americans suffering from the economic effects caused by the COVID-19 pandemic. The loans were granted to small businesses for the maintenance of employment and certain other expenses. Congress then authorized more than $300 billion in additional PPP funding.
The charges 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 charges each carry a potential maximum sentence of 10 years in prison and a maximum fine of $250,000 or double the gross gain to the defendant or the gross loss to the victim, whichever is greater.
Many federal agencies, including the Internal Revenue Service-Criminal Investigation, the US Postal Inspection Service and the Social Security Administration participated in the investigation.