Suspect Accused Of $1 Million Small Business Loan Scam In Fairfield: Police

FAIRFIELD, CT — A 25-year-old Flushing, New York man was arrested by Fairfield police on a warrant last month, after authorities said the suspect scammed a resident out of $1 million in an alleged small business loan scam.

Malik Z. Smith surrendered to Fairfield police in early February and was charged with first-degree larceny. He is free on bond of $200,000, and is scheduled to appear in Bridgeport Superior Court on Tuesday.

Fairfield police began investigating the alleged fraud case in March 2024, after a resident "reported being contacted about what was described as a loan affiliated with the U.S. Small Business Administration," Sgt. Jenna Wellington told Patch.

"During the course of the scheme, the victim was directed to transfer funds under the belief that the payments were required to finalize or release the loan proceeds," Wellington said in a statement to Patch. "Over several months, payments were sent through Zelle, Western Union, and bank wire transfers to multiple individuals and business accounts."

Initial payments totaled $150,000, according to Wellington, but "as the fraud continued, the losses escalated significantly. Ultimately, the total financial loss exceeded $1,000,000."

Using search warrants, financial analysis, and coordination with financial institutions, Fairfield detectives were able to identify Smith and others as the individuals who received funds connected to the scheme.

Wellington said that the department has active warrants for two additional suspects in the case.

"This investigation spanned more than a year and required extensive time, coordination, and financial analysis," Wellington said. "The case reflects the commitment, diligence, and sustained effort of Fairfield Police Detectives dedicated to holding those responsible accountable."