Somerset Co. Man Charged With $862K COVID-19 Relief Fraud Used Money To Travel

SOMERSET COUNTY, NJ — A Somerset County man charged with fraudulently obtaining $862,000 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.

Butherde Darius, 49, of North Plainfield, is charged with one count of bank fraud, one count of wire fraud, and four counts of money laundering.

Darius allegedly 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$862,000 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; a maximum of 20 years in prison on each count of wire fraud; and a maximum penalty of 10 years in prisonfor each count of money laundering.

Both the wire fraud and money laundering counts carry a maximum fine of $250,000 or twice the gross gain to Darius or gross loss to the victim, whichever is greatest.

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.

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