Holland man accused of recruiting others to defraud SBA for nearly $9 million in CARES Act funds

Published: May. 4, 2021 at 12:57 PM EDT
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TOLEDO, Ohio (WTVG) - A Holland man was among six individuals who were indicted by a federal grand jury for their alleged roles in a scheme to fraudulently obtain COVID-19 relief funds.

Terrence L. Pounds, 44, was one of the individuals from Ohio, Tennessee, and Connecticut who were indicted on 14 counts. The charges allege they schemed to obtain approximately $9 million from the U.S. Small Business Administration under the CARES Act.

The other individuals who were indicted were Charles B. Tiller, 37, of Columbus; Terri Davis, 30, of Old Hickory, Tennessee; Randolph Nunn, 48, of Canton, Ohio; Samira Abdul-Karim, 27, of New Haven, Connecticut; and Quwan Simmons, 28, of Hartford, Connecticut. They are charged with conspiracy to commit wire fraud and wire fraud.

Pounds, Nunn, Davis, and Tiller are also charged with various counts of money laundering.

The indictment said from on or about March 31, 2020, through on or about Dec. 17, 2020, the six defendants are accused of devising a scheme to defraud the SBA and other financial institutions by obtaining Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) loans under false pretenses.

According to the indictment, Pounds recruited Tiller, Davis, Nunn, Abdul-Karim, Simmons and others to provide him with their personal identifying information, which he then used to apply for EIDL loans in their names.

Pounds allegedly claimed in the EIDL loan applications that each operated a non-profit organization that was a “Faith-Based Organization” and a “Church” with $1,000,000 in revenue and 15 employees.

Based on the false information, the SBA approved these loan applications. In return, the indictment states that Tiller, Davis, Nunn, Abdul-Karim and Simmons then paid Pounds a portion of the fraudulently obtained loan proceeds.

Pounds also submitted an SBA EIDL loan application for a purported “Faith-Based Organization” and “Church” that Pounds claimed to operate, according to the indictment. In response to the information provided, the SBA approved and funded this loan application.

Pounds is accused of using portions of the loan proceeds and payments received from others to purchase a 2021 Chevrolet Tahoe, a 2021 Kia Telluride, a 2020 Hyundai Elantra and a 2020 BMW X4.

According to the indictment, Pounds, Tiller, Davis, Nunn, Abdul-Karim and Simmons, together and with other co-conspirators, submitted at least 60 fraudulent EIDL loan applications and other fraudulent PPP loan applications seeking a total of approximately $9 million. The SBA approved approximately $3.3 million.

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