NEWARK, N.J. – A Somerset County, New Jersey, man was arrested today for his role in fraudulently obtaining over $860,000 in federal Paycheck Protection Program (PPP) and Economic Injury Disaster Loan payments (EIDL), U.S. Attorney Philip R. Sellinger announced.
Butherde Darius, 49, of North Plainfield, New Jersey, is charged by complaint with one count of bank fraud, one count of wire fraud, and four counts of money laundering. Darius is scheduled to make his initial appearance by videoconference this afternoon before U.S. Magistrate Judge Michael A. Hammer.
According to documents filed in this case and statements made in court:
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on the PPP loan to be forgiven…
