Queens Man Indicted for Stealing More Than $1.1 Million in COVID-19 Loan Fraud Scheme

Summary

A press release of the U.S. Attorney's Office for the Eastern District of New York dated Thursday, February 22, 2024, announcing that Terry Dor, of Queens, was arrested and arraigned in Brooklyn on an eight-count indictment charging wire fraud, theft of public funds and money laundering in connection with the Small Business Administration's Economic Injury Disaster Loan program. It states that United States Chief Magistrate Judge Lois Bloom released him on a $50,000 bond. The release's subtitle states that he falsely claimed to operate a consulting firm and took emergency relief funds for personal use, and its title refers to more than $1.1 million. It was announced by United States Attorney Breon Peace and IRS-CI Special Agent-in-Charge Thomas Fattorusso.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Full text

Press Release

Queens Man Indicted for Stealing More Than $1.1 Million in COVID-19 Loan Fraud Scheme

Thursday, February 22, 2024

For Immediate Release

U.S. Attorney's Office, Eastern District of New York

Defendant Falsely Claimed that He Operated a Consulting Firm and Stole Emergency Relief Funds for Personal Use

Today in federal court in Brooklyn, Terry Dor was arraigned on an eight-count indictment charging him with wire fraud, theft of public funds and money laundering in connection with a scheme to steal funds from the Economic Injury Disaster Loan program (EIDL), a United States Small Business Administration (SBA) program that provided emergency funding to distressed businesses during the Covid-19 pandemic. Dor was arrested this morning and arraigned before United States Chief Magistrate Judge Lois Bloom who released him on a $50,000 bond.

Breon Peace, United States Attorney for the Eastern District of New York, and Thomas Fattorusso, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI), announced the arrest and indictment.

“As alleged, the defendant submitted applications filled with fabricated information in order to steal more than $1 million dollars in government funds intended to help hard-hit small businesses and their employees survive the economic fallout of the COVID-19 pandemic,” stated United States Attorney Peace. “The defendant then laundered and used the stolen funds to buy jewelry and for personal securities trading. Today’s indictment shows that this Office remains committed to identifying and prosecuting those who stole pandemic relief funds.”

“Dor is an alleged opportunist who took advantage of a program meant to help business owners who suffered loss with the pandemic. He allegedly used a sham business to steal more than a million dollars from the EIDL program, decreasing the amount of available funds for those in need,” stated IRS-CI Special Agent-in-Charge Fattorusso. “IRS Criminal Investigation New York remains committed to working with the U.S. Attorney’s Office for the Eastern District of New York to ensure that those who steal from the American taxpayer—to adorn themselves with lavish gifts—are arrested and prosecuted.”

The EIDL provided qualifying small businesses with low-interest loans. The Coronavirus Aid, Relief and Economic Security (CARES) Act expanded EIDL to provide economic support to help offset the temporary loss of revenue experienced by businesses due to the COVID-19 pandemic.

As alleged in the indictment, Dor applied for EIDL loans in 2020 and 2021. In the initial application and subsequent modification requests, Dor claimed that he operated a Brooklyn-based consulting business called Terry Dor Professional Consultants, LLC (TDPC), which, according to the defendant, had more than $575,000 in revenue and $535,000 in expenses during calendar year 2019. In reality, TDPC was a sham business with no legitimate revenue or expenses. Based on Dor’s false claims, the SBA deposited approximately $1,151,000 in EIDL funds to a bank account controlled by Dor via three installments. Dor then wired the EIDL proceeds to other accounts he controlled and used the proceeds to fund personal and non-TDPC expenses. For example, on December 13, 2021, Dor used $125,000 of the EIDL proceeds referenced above to make a purchase at a premium jewelry vendor located in New York City.

The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, Dor faces a maximum sentence of 20 years’ imprisonment.

The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorney David Berman is in charge of the prosecution, with the assistance of Financial Investigator Analyst John Gagliardo and Paralegal Specialist Katrina Batista.

The Defendant :

TERRY DOR Age: 36 Jamaica, Queens E.D.N.Y. Docket No. 24-CR-75 (OEM)

Contact

John Marzulli Danielle Blustein Hass U.S. Attorney's Office (718) 254-6323

Updated February 22, 2024

Attachment

Indictment [PDF, ]

Topics

Coronavirus

Financial Fraud

Component

USAO - New York, Eastern

File and source

File: usao-edny-pr-queens-man-indicted-stealing-more-11-million-covid-19-loan-fraud-scheme.html
Size: 104,045 bytes
SHA-256: dea2376b4755f54102018347f9042a913c08a69c00719c38d28c21bb8bdd207f
Our copy: usao-edny-pr-queens-man-indicted-stealing-more-11-million-covid-19-loan-fraud-scheme.html
Original: www.justice.gov