NEW HAVEN – A federal grand jury in New Haven has returned a 20-count indictment charging five Connecticut residents with offenses related to fraudulent small business loan applications in Connecticut and Washington, according to the U.S. Attorney for the District of Connecticut David Sullivan and FBI Special Agent P.J. O’Brien.
Danbury residents Mycall Obas, 42, Mbali Ncube, 35, Pierre Obas, 49, Teresa Vargas, 43, of Hartford, and Stephen Walker, 30, of New Canaan, were each indicted May 14. Mycall Obas, Ncube, Pierre Obas, and Vargas were arrested on May 15, and Walker was arrested May 19. Each has entered a plea of not guilty and is released on bond pending trial.
It is alleged that the co-conspirators applied for and obtained 12 loans totaling more than $2 million through this scheme.
The indictment charges each of the five defendants with one count of conspiracy to commit wire fraud, one count of conspiracy to commit money laundering, and multiple counts of wire fraud. Each of these charges carries a maximum term of imprisonment of 20 years.
The indictment also charges each of the five defendants with one more counts of making illegal monetary transactions, an offense that carries a maximum term of imprisonment of 10 years on each count. Mycall Obas and Pierre Obas are also charged with aggravated identity theft, which carries a mandatory term of imprisonment of two years.
According to the indictment, Mycall Obas, Ncube, Pierre Obas, and Walker used stolen personal and business identities, or created false business identities, to apply to NDC for small business loans through the Connecticut Small Business Boost Fund and the state of Washington’s Small Business Flex Fund, according to the indictment.
In connection with the loan applications, they created and submitted false business records, including fraudulent certificates of organization, false income statements, false balance sheets, and false tax returns.
As alleged in the indictment and statements made in court, Vargas, who was a contractor for NDC and responsible for processing and underwriting small business loan applications, processed some of the fraudulent loan applications and submitted them to NDC for approval. She also specifically requested to be the loan processor on certain loan applications submitted by her co-conspirators in order to further the scheme.
This matter is being investigated by the FBI with the assistance of the IRS – Criminal Investigation Division, and the Meriden and Danbury police departments.
