Three Middlesex County Individuals Charged with $2.1 Million in Paycheck Protection Program Fraud and Economic Injury Disaster Loan Fraud Schemes | USAO-NJ
NEWARK, N.J. – Three Middlesex County, New Jersey, residents were arrested today for their roles in fraudulently obtaining over $2.1 million in federal Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDL), U.S. Attorney Philip R. Sellinger announced.
Arlen G. Encarnacion, 35, of Perth Amboy, New Jersey, is charged by complaint with 11 counts of bank fraud, three counts of wire fraud, and two counts of money laundering. Kent Encarnacion, 28, of Perth Amboy, is charged by separate complaint with one count of bank fraud and two counts of money laundering. Jacquelyn Pena, 36, of Perth Amboy, is charged by separate complaint with three counts of bank fraud and two counts of money laundering. They are all scheduled to have their initial appearances by videoconference this afternoon before U.S. Magistrate District Judge Leda Dunn Wettre.
According to documents filed in these cases and statements made in court:
Arlen G. Encarnacion submitted 11 fraudulent PPP loan applications to two different lenders on behalf of nine purported businesses and three fraudulent EIDL applications to the Small Business Association (SBA) on behalf of three purported businesses. Kent Encarnacion submitted one fraudulent PPP loan application on behalf of a purported business to one lender and Jacquelyn Pena submitted three fraudulent PPP loan applications to two different lenders on behalf of three purported businesses.
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