Perth Amboy Trio Stole $2.1 Million In PPP Loans, Feds Say

PERTH AMBOY, NJ — Three Perth Amboy residents were arrested Thursday and charged with fraudulently obtaining more than $2.1 million in federal Paycheck Protection Program (PPP) loans, U.S. Attorney Phil Sellinger announced.

A Woodbridge man and woman were just arrested last Friday and charged with stealing CARES Act unemployment money. And a Sayreville man who admitted to stealing $481,000 in PPP loans was sentenced to prison Dec. 9.

Arlen G. Encarnacion, 35, was charged with 11 counts of bank fraud, three counts of wire fraud and two counts of money laundering. Kent Encarnacion, 28, and Jacquelyn Pena, 36, were similarly charged with bank fraud and laundering.

Of that $2.1 million, Arlen G. Encarnacion received approximately $1.69 million, Kent Encarnacion approximately $156,000, and Pena got approximately $335,000.

Federal agents say Pena used her money to buy real estate and Arlen G. Encarnacion used it to purchase a luxury Lamborghini SUV.

Federal agents say Arlen was the mastermind and that he submitted 11 fraudulent PPP loan applications to two different lenders on behalf of nine businesses he made up.

He also filed three fraudulent EIDL applications to the Small Business Association (SBA) on behalf of three other businesses, which federal prosecutors say were also fictional.

Detectives say all three made up employees and wages of these bogus companies. A quick check of IRS records found there were no W-3 forms, Transmittal or Wage and Tax Statements, nor W-2, Wage and Tax Statements filed for any of the companies between 2018 and 2020.

PPP loans were given out as part of the $2.2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act. In April 2020, Congress authorized more than $300 billion in additional PPP funding.

Similar: Woodbridge Man, Woman Stole CARES Act Unemployment Money: Feds (Dec. 12)

Prison For Sayreville Man Who Stole $481K In PPP Money (Dec. 9)

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