Brooklyn Man Accused of $1.2M COVID Loan Scam

Terrell Fuller, 33, of Brooklyn, is staring down decades in federal prison after being charged with wire fraud for allegedly ripping off the COVID-19 Economic Injury Disaster Loan (EIDL) program to the tune of $1.2 million. Federal prosecutors say Fuller submitted a bogus application on behalf of a business, triggering a payout from the Small Business Administration (SBA) that he then funneled into accounts he controlled.

The scheme, uncovered by investigators, involved a fraudulent EIDL application filed in September 2021. The SBA, operating under the CARES Act designed to buoy businesses during the pandemic, approved the loan and disbursed $1.2 million. But instead of going to a legitimate business struggling through the COVID-19 crisis, approximately $400,000 landed directly in bank accounts signed off on solely by Fuller.

The EIDL program, a lifeline for many small businesses, became a magnet for fraud as billions of dollars were rapidly deployed. The SBA, overwhelmed by applications, struggled to verify the legitimacy of many claims, creating opportunities for scammers like Fuller. The feds are cracking down on these schemes, promising serious consequences for those who exploited a national emergency for personal gain.

Fuller is currently charged with one count of wire fraud. If convicted, he faces a maximum sentence of 20 years behind bars and a hefty fine – the greater of $250,000, twice the gross profits earned from the scheme, or twice the gross loss suffered by those impacted. The investigation is ongoing, and prosecutors haven’t ruled out additional charges or the possibility of co-conspirators.

This isn’t an isolated incident. Grimy Times has been tracking a surge in COVID-relief fraud cases across the country, from tax preparers falsifying claims to multi-state schemes involving millions of dollars. The feds are dedicating significant resources to untangling these complex webs of deceit and bringing perpetrators to account. Just last week, two New York men admitted to fentanyl distribution linked to funds obtained through similar fraudulent applications.

Fuller’s case is being prosecuted by the U.S. Attorney’s Office for the District of New Jersey. He is presumed innocent until proven guilty. The Grimy Times will continue to follow this case and report on the ongoing efforts to combat fraud and hold those responsible accountable. Anyone with information related to COVID-19 relief fraud is encouraged to contact the SBA’s Office of Inspector General.

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