Jeremy Trapp, Covid-19 Related Fraud, New York 2020

Brooklyn Man Charged with Covid-19 Related Fraud

A Brooklyn man has been charged with wire fraud in connection with the Economic Injury Disaster Loan program, authorities announced yesterday.

Jeremy Trapp, 24, of Brooklyn, is accused of filing an application containing outright lies in order to steal government funds intended to help small businesses and their employees survive the economic fallout of the Covid-19 pandemic.

According to the complaint, Trapp claimed that he was the sole proprietor of a car wash business located at his home address in Brooklyn, a multi-unit residential building. He further represented that he employed ten individuals and that his gross revenue for the 12 months prior to the Covid-19 pandemic was $150,000.

Based on Trapp’s false representations, the Small Business Administration approved a $42,500 loan and $10,000 grant to Trapp, and these funds were deposited into Trapp’s bank account. On July 13, 2020, Trapp withdrew approximately $9,000 in cash from the bank account.

The government’s investigation revealed that Trapp did not operate a commercial car wash business, did not employ anyone and had no gross revenue from the purported business.

Trapp is in federal custody on other charges and made his initial appearance on the new charge yesterday before United States Magistrate Judge Vera M. Scanlon. The defendant remains detained pending trial.

If convicted, Trapp faces up to 20 years’ imprisonment on the fraud charge.

The government’s case is being prosecuted by Assistant United States Attorney Francisco J. Navarro.

Source: https://www.justice.gov/usao-edny/pr/brooklyn-man-charged-covid-19-related-fraud