2 Phoenix residents among 4 charged in coronavirus business relief fraud

PHOENIX — Two Phoenix residents are among four people facing charges of conspiracy, wire fraud and money laundering in connection with fraudulent Paycheck Protection Program loan applications, according to authorities.

The United States Attorney’s Office states in a complaint that 44-year-old Celestine Coletta Strong and 23-year-old Ty’zhaun Marqui Lewis between April and June conspired to submit loan applications with falsified employee and wage information, bank statements and other false information to obtain more than $3.5 million from 15 different loans.

Around $450,000 was obtained, some of which was used to buy a luxury Mercedes E400 that was later seized, before the scheme was interrupted.

“PPP loans have been essential to the survival of small businesses during the pandemic,” Michael Bailey, United States attorney, said in the release.

“It is reprehensible that some people would choose to take advantage of the program to fraudulently fill their own pockets rather than leaving that money for those who truly need it.”

Part of the $2 trillion CARES ACT signed by President Donald Trump in March, the loan program provides small businesses with funds for up to eight weeks of employees pay, including benefits, along with interest on mortgages, rent and utilities.

The loans can be forgiven if 75% of the funds are used for payroll costs.

If the four are convicted of wire fraud, they face a maximum prison sentence of 20 years, a $250,000 fine or both while a conviction for money laundering holds a maximum jail time of 10 years, a $250,000 fine or both.

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