2 men charged with fraudulent SBA loans
BOSTON (AP) – Federal officials on Monday announced that men in Massachusetts and New Hampshire have been indicted for their alleged roles in a scheme using stolen identities to fraudulently obtain more than $ 450,000 in disaster loans from the Small Business Administration.
About $ 250,000 of that money was used to purchase iPhones which were then resold, according to a statement from the US attorney’s office in Boston.
Edwin Acevedo, 35, of Acton, Mass., And Hector Garcia, 49, of Manchester, New Hampshire were arrested last week and charged with conspiracy to commit wire fraud. Garcia was also charged with aggravated identity theft.
Acevedo is being held pending a detention hearing. Garcia is scheduled to appear in court for the first time on September 3.
An email requesting comment was left with Acevedo’s lawyer. Court records did not indicate a lawyer for Garcia.
Garcia used the stolen identity of a U.S. citizen to open a fraudulent bank account, which was linked to other fraudulent bank accounts created to receive the loans, prosecutors said.
Acevedo then distributed debit cards associated with those accounts to other alleged accomplices, which were used to launder the loans by buying iPhones for resale, prosecutors said.
Garcia also transferred part of the funds to the Dominican Republic, authorities said.