Darrell Baker, Bank Fraud, Michigan 2021

Grimy Times has learned that a Detroit resident has pleaded guilty to bank fraud and money laundering arising out of a $590,000 COVID-19 fraud scheme.

According to the United States Attorney's office, Darrell Baker, 56, pleaded guilty to one count of bank fraud arising from his effort to obtain some $590,000 by defrauding a Pennsylvania financial institution in the issuance of a Payroll Protection Program Loan.

Baker also pleaded guilty to one count of money laundering, the result of financial transactions he engaged in with the fraudulently obtained funds.

“My office and our law enforcement partners have no tolerance for frauds affecting programs designed to help our economy survive the COVID-19 pandemic,” stated United States Attorney Matthew Schneider. “We will prosecute such cases aggressively, and today’s guilty plea is an example of our commitment to holding accountable anyone fraudulently obtaining pandemic relief funds to line their own pockets.”

“Mr. Baker’s scheme exploited a fund designed specifically to support Americans during this financially challenging time,” said Steven M. D’Antuono, Special Agent in Charge of the FBI in Michigan. “Thanks to the hard work of the FBI and all of the agencies involved in this investigation, monies set aside for hard working Americans who are not able to work during this pandemic is secure and available for the people that need it most, not for the fraudsters like Mr. Baker.”

The plea agreement requires Baker to forfeit two Cadillac Escalades, a Dodge Charger, and a Hummer, which he purchased with the fraudulently obtained funds. Baker also agreed to the entry of a money judgment against him in the amount of $172,484.40, which represents the portion of the loan that Baker obtained before his fraud was uncovered and the balance of the loan frozen.

Sentencing is set for January 14, 2021, before United States District Judge Laurie J. Michaelson.

The case is being prosecuted by Assistant United States Attorney John K. Neal. The investigation is being conducted jointly by the FBI and the SBA-OIG.

Mandatory facts: Defendant name - Darrell Baker, Exact criminal charges - Bank fraud and money laundering, City and state - Detroit, Michigan, Exact date with month/day/year - Not specified, Sentence or outcome - Sentencing set for January 14, 2021, Dollar amounts - $590,000, $172,000, $172,484.40.

Source: https://www.justice.gov/usao-edmi/pr/detroit-resident-pleads-guilty-covid-19-fraud-scheme