US based Ghanaian couple arrested and charged with fraud
29th January 2021
A Ghanaian couple based in the USA have been arrested on the charges of fraud.
Lucy Oworae, 56, and her husband, Richard Oworae, 59, were charged by criminal complaint with wire fraud and making false statements.
A Worcester couple were arrested and have been charged in connection with fraudulently applying for business loans under the CARES Act, and then spending the money on personal expenses.
According to statement released by the US Department of Justice, they were arrested on Thursday 21st January,2021.
Between late July 2020 and late August 2020, Lucy and Richard Oworae schemed to defraud the Small Business Administration (SBA) by submitting applications through SBA’s website for at least three Economic Injury Disaster Loans (EIDL) totaling approximately $194,700.
The Oworaes fraudulently applied for EIDL loans, provided false statements on the loan applications and misappropriated the loan funds for their personal use.
The Oworaes allegedly created fictitious companies for the purpose of fraudulently applying for EIDL loans, and spent funds obtained from that fraud on unauthorized personal expenses and to make money transfers through a money-remitter business based in Tanzania to numerous individuals residing in Ghana.
EIDL funds are available to eligible individuals and businesses pursuant to the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). The provisions of the CARES Act allowed for the SBA to offer EIDL funding to business owners negatively affected by the COVID-19 pandemic. The provisions of the EIDL program require that loan proceeds only be used on certain permissible business expenses, which can include payment of fixed business debts, payroll, accounts payable, and other business-related expenses that could have been paid had the COVID-19 disaster not occurred.
The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. The charge of making false statements provides for a sentence of up to five years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.