The United States District Court recently sentenced Ramon Joseph Cruz, Jr., a 27-year-old Methuen man, for his part in defrauding the Small Business Administration (SBA) through its Economic Injury Disaster Loan program according to the Department of Justice (DOJ). Cruz's sentence includes two years and one day in prison, followed by three years of supervised release, with restitution to be determined at a later date.
The DOJ's announcement chronicles the fraudulent scheme Cruz and his co-defendant Darwyn Joseph hatched to steal over $452,000 in SBA funds intended for economically hurting Americans. The duo used stolen identities to open fraudulent bank accounts connected to other counterfeit accounts set up to receive the ill-gotten funds. Lavish acquisitions, such as iPhones valued at approximately $250,000, became the primary feature of their laundering operation, shipping purchases from Massachusetts and New Hampshire to the Dominican Republic.
Cruz entered a guilty plea on May 18, 2023 to one count of conspiracy to commit wire fraud, as well as four counts of wire fraud and aiding and abetting. Another DOJ article reveals alleged co-conspirator Darwyn Joseph also entered a guilty plea for his role in the conspiracy last month, on July 12, 2023, with his sentencing slated for October 19, 2023.
The DOJ's announcement also highlights the ongoing efforts of their COVID-19 Fraud Enforcement Task Force, established on May 17, 2021, in order to combat pandemic-related fraud through investigating, prosecuting, and sharing information with partner agencies. While the pursuit of justice for Cruz and Joseph is a victory in dismantling such reprehensible schemes, the unfortunate reality is that others continue to engage in similar fraud, undermining the trust of communities and taking advantage of vulnerable citizens.
