Elizier Scher — Sealed Indictment

Summary

A sealed indictment in United States v. Elizier Scher, 22 Cr., in the U.S. District Court for the Southern District of New York, charging wire fraud under Title 18, United States Code, Sections 1343 and 2. It describes Scher as a Spring Valley, New York resident who established a series of purported one-employee companies, the first on or about October 24, 2017, and explains that some EIDL borrowers could receive up to $15,000 in advances that did not need to be repaid. The indictment alleges that over an approximately four hour period on or about July 13, 2020, Scher submitted twelve EIDL applications to the SBA over the Internet with materially false statements, received the proceeds by wire and used them inconsistently with the loan agreements. It closes with a forfeiture allegation.

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UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK

UNITED STATES OF AMERICA SEALED
INDICTMENT
22 Cr. ss )
ELIZIER SCHER,
COUNT ONE
(Wire Fraud)
The Grand Jury charges:
BACKGROUND
1. Unless specified otherwise, at all times relevant
to this Indictment:
a. ELIZIER SCHER, the defendant, was a resident
of Spring Valley, New York.
b. Scherl Inc. was a purported printing and

graphic design company with one employee that SCHER established

on or about October 24, 2017.

b, Scher2 Inc. was a purported billing services
company with one employee that SCHER established on or about

November 30, 2017.

om Scher3 Inc. was a purported advertising and
sales company with one employee that SCHER established on or
about December 1, 2017.

d. Scher4 Inc. was a purported printing and graphic
design company with one employee that SCHER established on or
“about December 13, 2017. |

e. Scher5 Inc. was a purported billing services
company with one employee that SCHER established on or about
December 18, 2017. |

£. Scher6 Inc. was a purported construction company
with one employee that SCHER established on or about December
20, 2017. |

g. Scher7 Inc. was a purported construction company
with one employee that SCHER established on or about December
27, 2017.

h. Scher8 Inc. was a purported billing services
company with one employee that SCHER established on or about
January 17, 2018.

i. Scher9 Inc. was a purported advertising and sales
company with one employee that SCHER established on or about
January 23, 2018.

1. Scher10 was a purported construction company with

one employee that SCHER established on or about January 25,
2
2018.

k. Truck Your Way Inc. was a purported freight
company with one employee that SCHER established on or about
October 18, 2017.

L. Scher Realty Group Inc. was a purported real
estate company with one employee that SCHER established on or
about July 8, 2015.

m. The U.S. Small Business Administration (“SBA”)
administered the Economic Injury Disaster Loan (“EIDL”) program,
which was intended to provide funding to help small business
recover from the economic impacts of the Covid-10 pandemic. The
maximum amount of the loan was determined by a formula based on
the date the borrower began operating and the borrower’s gross
revenue and cost of goods sold for the 12 months prior to
January 31, 2020. The loans could be used for only working
capital and other normal operating expenses. While the loans
generally need to be repaid, some borrowers were eligible for up
to $15,000 in advances that did not need to be repaid.

THE SCHEME TO DEFRAUD

2. Over an approximately four hour period on or
about July 13, 2020, ELIZIER SCHER, the defendant, submitted

twelve applications for EIDL loans to the SBA over the Internet

3
devised and intending to devise a scheme and artifice to
defraud, and for obtaining money and property by means of ©
materially false and fraudulent pretenses, representations and
promises, for the purpose of executing such scheme and artifice,
transmitted and caused to be transmitted by means of wire
communication in interstate commerce, writings, signs, signals,
pictures, and sounds, to wit, SCHER submitted loan applications
containing materially false statements to the SBA over the
Internet, received loan proceeds by interstate wire transfer and
used the loan proceeds in a manner inconsistent with the
respective loan agreements, as described above.

(Title 18, United States Code, Sections 1343 and 2.)-

FORFEITURE ALLEGATION

6. As the result of committing the wire fraud offense
in violation of Title 18, United States Code, Section 1343 as
charged in Count One of this Indictment, ELIZIER SCHER, the
defendant, shall forfeit to the United States, pursuant to Title
18, United States Code, Section 981(a)(1)(C) and Title 28,
United States Code, Section 2461, all property, real and
personal, that constitutes or is derived from proceeds traceable

to the commission of the offense.
Substitute Asset Provision

7. (If any of the above-described forfeitable

property, as a result of any act or omission of the defendant:

diligence;

deposited with,

the Court;

or

(a) cannot be located upon the exercise of due

(b) has been transferred or sold to, or

a third person;

(c) has been placed beyond the jurisdiction of

(d) has been substantially diminished in value;

(e) has been comingled with other property which

cannot be subdivided without difficulty;

it is the intent of the United States, pursuant to Title 21,

United States Code, Section 853(p), to seek forfeiture of any

other property of the defendant up to the value of the above

forfeitable property.

(Title 18, United States Code, Section 981 (a) (1) (C);
Title 21, United States Code, Section 853(p);
Title 28, United States Code, Section 2461.)

FORE PERSON

DAMIAN WILLIAMS
United States Attorney


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