Indictment — United States v. Elizier Scher, Southern District of New York (Document 2)

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A sealed indictment against Elizier Scher, Case 7:22-cr-00320, in the U.S. District Court for the Southern District of New York, filed 06/07/22 as Document 2, charging one count of wire fraud under Title 18, United States Code, Sections 1343 and 2. It alleges that over an approximately four hour period on or about July 13, 2020, Scher submitted twelve EIDL applications to the SBA for companies including Truck Your Way Inc. and Scher Realty Group Inc., with materially false statements about gross revenue and cost of goods sold. The indictment states that between on or about July 20, 2020 and on or about August 11, 2020 the applicants received a net total of approximately $1,648,900 in loan proceeds. It alleges Scher used the proceeds to buy real estate and pay credit card expenses instead of for working capital. It includes a forfeiture allegation.

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Case 7:22-cr-00320-PMH Document 2 Filed 06/07/22 Page 1 of 6

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK

UNITED STATES OF AMERICA SEALED
: INDICTMENT
ELIZIER SCHER,
Defendant.
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.

Cc. Scher3 Inc. was a purported advertising and
Case 7:22-cr-00320-PMH Document 2 Filed 06/07/22 Page 2 of 6

sales company with one employee that SCHER established on or
about December 1, 2017.

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

j. Scherl0 was a purported construction company with

one employee that SCHER established on or about January 25,

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Case 7:22-cr-00320-PMH Document 2 Filed 06/07/22 Page 3 of 6

2018.

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

i. 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
Case 7:22-cr-00320-PMH Document 2 Filed 06/07/22 Page 4 of 6

on behalf of Scherl Inc. through Scherl0 Inc., Truck Your Way
Inc. and Scher Realty Group Inc. In each of the twelve
applications, SCHER claimed to own the applicant in its
entirety. SCHER further requested on each application that the
borrower be considered for an advance of up to $10,000 that did
not need to be repaid.

3. ELIZIER SCHER, the defendant, made materially
false statements in each application with respect to each
applicant’s gross revenue and cost of goods sold for the twelve
month period prior to January 31, 2020.

4, Between on or about July 20, 2020 and on or about
August 11, 2020, the twelve applicants, with the exception of
Scherl Inc., received a net total of approximately $1,648,900 in
loan proceeds from the SBA by wire from Virginia to the
applicants’ respective bank accounts in White Plains, New York.
ELIZIER SCHER, the defendant, used the proceeds to buy real
estate and to pay credit card expenses instead of using it for
working capital for the borrowers, as SCHER agreed to do in the
loan agreements he executed on behalf of the borrowers.

5. From in or about July 2020 to in or about February
2021, in the Southern District of New York and elsewhere,

ELIZIER SCHER, the defendant, knowingly and willfully, having
4
Case 7:22-cr-00320-PMH Document 2 Filed 06/07/22 Page 5 of 6

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 98i(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.
Case 7:22-cr-00320-PMH Document 2 Filed 06/07/22 Page 6 of 6

Substitute Asset Provision

7. If any of the above-described forfeitable
property, as a result of any act or omission of the defendant:

(a) cannot be located upon the exercise of due
diligence;

(b) has been transferred or sold to, or
deposited with, a third person;

(c) has been placed beyond the jurisdiction of
the Court;

{d) has been substantially diminished in value;
or (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 98 l(a) (1) (C);

Title 21, United States Code, Section 853(p);
Title 28, United States Code, Section 2461.)

FOREPERSON Y DAMIAN WILLIAMS
United States Attorney


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