2 accused of fraud in applying for $5M in CARES Act loans

CONCORD, N.H. (AP) — Two men have been indicted by a federal grand jury in New Hampshire on multiple fraud charges alleging that they falsely applied for $5 million in federal CARES Act loans for companies and misused some of the proceeds, including one man’s purchase of a Rolls Royce.

One man was based in Northwood, New Hampshire, and the other initially was in the state and later moved to Irvine, California, according to court documents.

Prosecutors allege that the two applied for over two dozen loans for at least seven companies during the pandemic in 2020 and 2021, submitting fabricated tax documents that inflated their size and payroll.

The California man was arrested in Hawaii on Thursday, according to court documents. It was not immediately known if he had an attorney.

The New Hampshire man was arrested, released, and faces a July 8 hearing. A message was left for his attorney.