Worcester man pleads guilty to $195K CARES Act false business fraud
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U.S. District Court in Worcester
A Worcester man pleaded guilty in the U.S. District Court for fraudulently applying for a business loan from the Coronavirus Aid, Relief, and Economic Security (CARES) Act and using the funds for personal expenses, according to a Wednesday release from the U.S. Attorney’s office.
After being arrested and charged in January, Richard Oworae, 59, pleaded guilty to three counts of wire fraud and one count of aggravated identity theft, said the release.
The story was initially reported by This Week in Worcester.
Oworae submitted applications to the U.S. Small Business Administration for at least three Economic Injury Disaster Loans, which totaled roughly $195,000. He used false information on the applications, including stolen personal identification information from another person.
Congress passed The CARES Act in March 20 to provide economic relief in the wake of the coronavirus pandemic fallout, including offering financial assistance to small business owners through EIDL and the Paycheck Protection Program.
Oworae’s charges provide for a sentence of up to 20 years in prison, three years of supervised release, and a fine of up to $1 million, according to the press release. Sentencing is scheduled for Jan. 12.
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