$850K COVID-19 Relief Fraud Scheme Admitted By Somerset County Man

SOMERSET COUNTY, NJ — A Somerset County man admitted to fraudulently obtaining more than $850,000 in COVID-19 relief loans under the Paycheck Protection Program(PPP) and Economic Injury Disaster Loan payments (EIDL) and used the money to travel, U.S. Attorney Philip R. Sellinger announced Tuesday.

Butherde Darius, 50, of North Plainfield, pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court on Nov. 21, to an information charging him with one count of conspiracy to commit bank fraud, and one count of money laundering. He was previously charged in January 2022.

Darius submitted fake PPP and EIDL loan applications on behalf of his purported business, Fabulous Appetizers LLC. The applications contained a fake federal home loan member, bogus tax information from the IRS, and other fraudulent information, according to documents filed in this case and statements made in court.

As a result, Darius received about $852,000 in federal COVID-19 emergency relief funds meant for distressed small businesses. Darius spent the proceeds on personal expenses, including hotels and airfare, and made cash withdrawals of over $58,000, according to the charges.

Darius faces 30 years in prison and a fine of $1 million on the count of bank fraud; and a maximum penalty of 10 years in prison for the count of money laundering and a maximum fine of $250,000.

Sentencing is scheduled for March 6, 2023.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form.

Have a news tip? Email alexis.tarrazi@patch.com.