NEW HAVEN, CT — Five Connecticut residents have been federally indicted for allegedly defrauding over $2 million in small business loans in both Connecticut and Washington State, according to the U.S. Department of Justice (DOJ).
The individuals charged are Pierre Obas, 49; Mycall Obas, 42; Mbali Ncube, 35; Teresa Vargas, 43; and Stephen Walker, 30. A federal grand jury in New Haven returned a 20-count indictment accusing them of a coordinated fraud scheme involving stolen and fabricated identities.
The group allegedly submitted 12 fraudulent loan applications through programs such as the Connecticut Small Business Boost Fund (CT Boost) and the Flex program, both run by the non-profit lender National Development Council (NDC), also known as Grow America.
According to court records, the defendants used either stolen personal and business identities or fake business profiles to secure funds intended to support legitimate small businesses.
Each defendant is charged with:
Conspiracy to commit wire fraud
Conspiracy to commit money laundering
Multiple counts of wire fraud
Each of these charges carries a maximum sentence of 20 years in prison.
They also face charges for illegal monetary transactions, which could add up to 10 years per count. In addition, Mycall and Pierre Obas face aggravated identity theft charges, carrying a mandatory two-year sentence.
The indictment underscores ongoing federal efforts to clamp down on fraudulent misuse of public and non-profit small business loan programs.
