A Worcester man has recently been sentenced to two years in prison and one year of supervised release for fraudulent misconduct, according to the U.S. Department of Justice (DOJ). Richard Oworae, aged 59, faced charges related to fraudulently applying for business loans under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, utilizing the money for personal expenses rather than assisting a business. On September 15, 2021, he pleaded guilty to three counts of wire fraud and one count of aggravated identity theft.
Oworae was found to have submitted applications on the Small Business Administration (SBA) website for at least three Economic Injury Disaster Loans (EIDL). He did so between late July and late August 2020, and, under a fraudulent pretense, secured a total of approximately $194,700. Oworae used lowered personal identification information stolen from another to provide false statements on applications, create fictitious companies, and misdirect the funds for his own use. He also used a part of the money obtained from fraud on personal expenses and sent money to Ghana.
The SBA under CARES Act provisions offered EIDL funds to eligible businesses affected by the pandemic. The funding was intended to aid businesses in meeting payment obligations, including fixed business debts, payroll, accounts payable, and other regular business-related expenses.
The government has noted similar fraudulent patterns in schemes trying to exploit relief funds allocated to aid businesses during the pandemic. In response to this, the Attorney General established the COVID-19 Fraud Enforcement Task Force on May 17, 2021. This task force aims to reinforce efforts in the investigation and prosecution of fraudulent behaviors related to COVID-19 and focuses on the identification of fraudulent actors, their schemes, and prevention of pandemic-related fraud.
Concerns have been raised regarding individuals who exploit emergency relief measures for personal advantages despite the intent of these relief efforts to help those genuinely in need. However, this has led to increased determination to hold such individuals accountable and strengthen prevention measures in the future.
The Department of Justice is urging anyone with relevant information regarding attempted COVID-19 fraud allegations to reach out. These individuals are encouraged to call the National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or complete the NCDF Web Complaint Form.
