New Haven Woman Charged With Fraud In COVID Relief Fund Scheme

NEW HAVEN, CT — A federal grand jury returned a 14-count indictment charging six people for their alleged roles in a scheme to fraudulently obtain approximately $9 million in COVID-19 relief funds guaranteed by the U.S. Small Business Administration under the Coronavirus Aid, Relief, and Economic Security Act.

Samira Abdul-Karim, 27, of New Haven, was one of the six charged.

According to the Justice Department, Abdul-Karim and another Connecticut resident, Quwan Simmons, 28, of Hartford, were indicted along with people from Ohio, and Tennessee. Federal prosecutors said that the two from Connecticut and Terrence L. Pounds, 44, of Holland, Ohio; Charles B. Tiller, 37, of Columbus, Ohio; Terri Davis, 30, of Old Hickory, Tennessee; and Randolph Nunn, 48, of Canton, Ohio, are all charged with conspiracy to commit wire fraud and wire fraud.

According to the indictment, from on or about March 31, 2020, through on or about Dec. 17, 2020, the six defendants, and others known and unknown to the Grand Jury, are accused of devising a scheme to defraud the SBA and other financial institutions by obtaining Economic Injury Disaster Loans and Paycheck Protection Program loans under false pretenses, the Justice Department said.

“The CARES Act was designed to help struggling Americans, not for greedy fraudsters to line their pockets," FBI Special Agent in Charge Eric B. Smith was quoted as saying.

The indictment states that Pounds recruited Tiller, Davis, Nunn, Abdul-Karim, Simmons and others to provide him with their personal identifying information, which he then used to apply for EIDL loans in their names, DOJ said.

Pounds allegedly claimed in the EIDL loan applications that Tiller, Davis, Nunn, Abdul-Karim and Simmons each operated a non-profit organization that was a “Faith-Based Organization” and a “Church” with $1,000,000 in revenue and 15 employees, federal prosecutors said. Based on this false information, the SBA approved these loan applications.

In return, the indictment states that Tiller, Davis, Nunn, Abdul-Karim and Simmons then paid Pounds a portion of the fraudulently obtained loan proceeds, a news release from the Justice Department reads.

Tiller, Davis, Nunn, Abdul-Karim and Simmons are all accused of using the EIDL loan proceeds for the benefit of themselves and others, and in a manner that was inconsistent with the purposes of the EIDL program, the feds said, adding that Pounds submitted an SBA EIDL loan application for a purported “Faith-Based Organization” and “Church” that Pounds claimed to operate.

Pounds is accused of using portions of the loan proceeds and payments received from others to purchase a 2021 Chevrolet Tahoe, a 2021 Kia Telluride, a 2020 Hyundai Elantra and a 2020 BMW X4.According to the indictment, Pounds, Tiller, Davis, Nunn, Abdul-Karim and Simmons, together and with other co-conspirators, submitted at least 60 fraudulent EIDL loan applications and other fraudulent PPP loan applications seeking a total of approximately $9 million. The SBA approved approximately $3.3 million.

“COVID-19 relief funds are intended to support hardworking Americans and small businesses struggling with financial challenges as a result of the pandemic,” Acting U.S. Attorney Bridget M. Brennan said.