2 Camden County Residents Committed $1.4M In CARES Act Fraud: FBI

CAMDEN COUNTY, NJ — Two Camden County residents have been charged for their roles in a scheme to defraud the federal government out of about $1.4 million in Coronavirus Aid, Relief, and Economic Security (CARES) Act funding, Acting U.S. Attorney Rachael A. Honig announced on Thursday.

Stephen Bennett, 45 of Berlin, and Rhonda Thomas, 36 of Sicklerville, have each been charged with one count of conspiracy to commit wire fraud and bank fraud, one count of bank fraud, and one count of conspiracy to commit money laundering, authorities said.

Authorities say they stole the money through fraudulent Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDL).

Bennett, Thomas and other co-conspirators who have not yet been named submitted 15 fraudulent PPP loan applications and six fraudulent EIDL loan applications to several lenders and the Small Business Association on behalf of 12 purported businesses, according to the criminal complaints.

The applications included forged tax returns and altered bank statements, according to authorities. Authorities said there were no wages or Forms W-2 processed for any of the businesses between 2018 and 2020.

Thirteen of the 15 applications were approved, resulting in $1.4 million of money that is meant to help businesses struggling amid the coronavirus pandemic going to the conspirators, authorities said.

The PPP allows qualifying small businesses and other organizations that have been negatively impacted by the coronavirus pandemic to receive loans, which must be used by businesses on payroll costs, interest on mortgages, rent, and utilities.

It allows the interest and principal on the loan to be forgiven if the business spends the money on these expense items within a designated period and uses at least a certain percentage of the PPP loan proceeds on payroll expenses.

A company may use EIDL funds for payroll expenses, sick leave, production costs, and business obligations, such as debts, rent, and mortgage payments.

Instead, Bennett and Thomas used the money to buy personal items, including vehicles and jewelry.

The counts of bank fraud and conspiracy to commit wire fraud and bank fraud are each punishable by a maximum of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greater.

The count of conspiracy to commit money laundering is punishable by a maximum of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greater.