BRIDGEPORT – A 25-year-old Flushing, New York, man was arraigned Tuesday in Bridgeport Superior Court on a felony charge of larceny in the first degree related to an alleged $1 million small business loan scam in Fairfield.
Malik Z. Smith surrendered to Fairfield police on Feb. 2 and was charged with first-degree larceny following a two-year investigation into a fraud complaint by Fairfield police.
According to Sgt. Jenna Wellington, on March 11, 2024, Fairfield police investigated a fraud complaint after a resident reported being contacted about what was described as a loan affiliated with the U.S. Small Business Administration (SBA). The resident was led to believe the funding was part of a legitimate SBA program and was instructed to provide personal and financial information in order to secure the loan.
During the course of the scheme, the victim was directed to transfer funds under the belief that the payments were required to finalize or release the loan proceeds. Over several months, payments were sent through Zelle, Western Union, and bank wire transfers to multiple individuals and business accounts. Initially, more than $150,000 was sent. As the fraud continued, the losses escalated significantly. Ultimately, the total financial loss exceeded $1 million.
Through search warrants, financial analysis, and coordination with financial institutions, Fairfield police detectives identified those who received funds connected to the scheme. Police applied for and obtained arrest warrants charging them with larceny in the first degree. Those warrants are still outstanding.
Smith was arraigned in Bridgeport Superior Court Tuesday morning. He had been out on a $200,000 surety bond prior to his court appearance.
This investigation spanned required extensive time, coordination, and financial analysis, according to Wellington. The case reflects the commitment, diligence, and sustained effort of Fairfield police detectives dedicated to holding those responsible accountable, she added.
