Newark Reporter

A Pennsylvania man has been sentenced to 78 months in prison for his involvement in a scheme to fraudulently obtain over $4.8 million in federal Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL). The announcement was made by U.S. Attorney Philip R. Sellinger.

Darryl Duanne Young, also known as “Darryl Duanne Isom Young,” aged 61, from Kingston, Pennsylvania, pleaded guilty on November 14, 2023, before U.S. District Judge Peter G. Sheridan in Trenton federal court. He faced charges of conspiracy to commit bank fraud and money laundering. The sentence was imposed by U.S. District Judge Georgette Castner.

“This defendant admitted taking advantage of government programs that were specifically designed to provide needed financial assistance to Americans during the COVID-19 pandemic,” stated U.S. Attorney Sellinger. “Combatting pandemic fraud in all of its forms is a top priority for this office and our law enforcement partners.”

Special Agent in Charge Jenifer L. Piovesan of IRS Criminal Investigation's Newark Field Office commented, “COVID-19 relief funds were meant to assist honest, hardworking Americans during an unprecedented time of hardship in our country, not to aid those trying to enrich their lives through deception.”

Inspector Christopher A. Nielsen of the Philadelphia Division emphasized the commitment of postal inspectors: “This sentencing should serve as a resounding message to anyone who wants to utilize the US Mail to defraud the American taxpayer.”

Michelle L. Anderson, Acting Inspector General for the SSA, noted that Young exploited federal assistance programs intended for those in need during a national crisis: “This sentence now holds him accountable for his criminal acts.”

Special Agent Patricia Tarasca from FDIC OIG reiterated that fraudulent schemes undermine the integrity of the nation's banking system: “The FDIC OIG remains committed to working with our law enforcement partners.”

Brian Tucker from the Office of Inspector General for the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau remarked on Young’s actions: “Darryl Duanne Young defrauded the federal government of nearly $5 million in pandemic relief funds for his own personal gain and will now pay the price for his crimes.”

HSI Newark acting Special Agent Spiros Karabinas stated: “Young will serve time for selfishly pocketing millions of dollars in emergency funds our government intended to give qualified Americans and small businesses who needed economic assistance in the wake of the COVID-19 pandemic.”

According to court documents and statements made during proceedings, Young engaged in a scheme where he submitted fraudulent PPP and EIDL loan applications with fabricated employee numbers and misrepresented company information. This led lenders into approving loans they otherwise would not have approved.

In addition to his prison term, Judge Castner sentenced Young to three years of supervised release and ordered restitution amounting to $5.28 million.

U.S. Attorney Sellinger credited various special agents from IRS-Criminal Investigation; U.S Postal Inspection Service; Social Security Administration's Office of Inspector General; Board of Governors’ Federal Reserve System - Consumer Financial Protection Bureau's Office; Federal Housing Finance Agency's Office; Federal Deposit Insurance Corporation’s Office; Homeland Security Investigations Newark; along with Assistant U.S Attorneys Katherine M Romano and David E Dauenheimer.

Individuals with information about attempted COVID-19 fraud can report it via DOJ’s National Center for Disaster Fraud Hotline at 866-720-5721 or through their online complaint form.

The District of New Jersey COVID-19 Fraud Enforcement Strike Force is part of five strike forces established nationwide by DOJ aimed at investigating large-scale pandemic relief frauds.