Related Federal Cases
COVID-19 Relief Fund Scam Lands Spring Valley Man Behind Bars
A Spring Valley man is facing the consequences of a COVID-19 relief fund scam that netted him over $1.6 million in stolen funds. Elizier Scher, 34, of Spring Valley, New York, was sentenced to one year and one day in prison by U.S. District Judge Philip M. Halpern for his scheme to defraud the U.S. Small Business Administration (“SBA”) of more than $1.6 million in COVID-19 relief funds.
According to officials, Scher submitted 12 applications for Economic Injury Disaster Loans (EIDL) in a principal amount of $150,000 to the SBA online on behalf of 12 different corporations that he owned and controlled. The applications contained materially false statements regarding the corporations’ gross revenue and cost of goods sold for the 12-month period prior to January 31, 2020.
Between July 20, 2020, and August 11, 2020, 11 of the 12 applicants received a net total of $1,648,900 in loan proceeds from the SBA. Scher used the funds to buy real estate and pay credit card expenses instead of using them for working capital for the borrowers, as he had agreed to do in the loan agreements.
“Elizier Scher schemed to steal taxpayer funds intended for small businesses in need of assistance during the pandemic,” said U.S. Attorney Damian Williams. “His intent to illegally profit from a national emergency that affected countless businesses and uprooted lives resulted in a sentencing reflecting the severity of his actions. Exploiting a crisis for personal gain will face the full force of the law.”
In addition to the prison term, Scher was sentenced to two years of supervised release and ordered to pay $1,648,900 in forfeiture.
The investigative work of the Federal Bureau of Investigation was praised by Mr. Williams. Assistant U.S. Attorney James McMahon is in charge of the prosecution.
This case is being handled by the Office’s White Plains Division.
Mandatory Facts:
- Defendant: Elizier Scher
- Criminal Charges: Wire Fraud
- City and State: Spring Valley, New York
- Date: February 1, 2023 (plea), February 27, 2023 (sentencing)
- Sentence: One year and one day in prison, two years of supervised release, $1,648,900 in forfeiture
- Dollar Amount: $1,648,900
Key Facts
- State: New York
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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