A 26-year-old Lawrence, Massachusetts resident, Darwyn Joseph, admitted guilt in a federal court in Boston for orchestrating a scheme that defrauded the government of over $450,000 in COVID-19 disaster relief loans. Joseph's scheme involved exploiting stolen identities to secure Small Business Administration Economic Injury Disaster Loans (EIDL), funds specifically earmarked to assist struggling businesses during the pandemic.
Working with an accomplice, Ramon Joseph Cruz Jr., Joseph used these illicitly obtained funds to purchase approximately $250,000 worth of iPhones across Massachusetts and New Hampshire. These devices were subsequently resold, effectively laundering the stolen money. A portion of the funds was also transferred internationally. The fraudulent activities took place in 2020, leading to their arrests in December of that year and subsequent indictment in January 2021.
Cruz Jr. pleaded guilty in May and awaits sentencing scheduled for August 30th. Joseph's sentencing is set for October 19th. As part of his plea agreement, an identity theft charge against Joseph was dropped. Both men face a potential maximum sentence of 20 years in prison for their involvement in the scheme.
