5 Connecticut residents charged with Washington loan fraud targeting bank
May 20, 2025, 3:03 PM | Updated: 6:13 pm
A sign marks the location of the U.S. Department of Justice (DOJ) headquarters building. (Photo: J. David Ake, Getty Images)
(Photo: J. David Ake, Getty Images)
Five Connecticut residents have been charged for allegedly defrauding small business loan applications in both Connecticut and Washington State.
The Department of Justice (DOJ) of the District of Connecticut announced a federal grand jury in New Haven returned a 20-count indictment. The individuals charged with fraud are: Pierre Obas, 49; Mycall Obas, 42; Mbali Ncube, 35; Teresa Vargas, 43; and Stephen Walker, 30.
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Small business involvement
According to the DOJ, the suspects targeted the Small Business Flex Fund (“Flex”), a Washington State economic initiative supported by the Washington State Department of Commerce connecting small businesses and non-profits with support services.
They also allegedly targeted the National Development Council (NDC), known as ‘Grow America’, a non-profit lender providing capital to small businesses, and the Connecticut Small Business Boost Fund (“CT Boost”).
“It is alleged that the co-conspirators applied for and obtained 12 loans totaling more than $2 million through this scheme,” the DOJ said.
The five residents were charged with several offenses
“As alleged in the indictment and statements made in court, Mycall Obas, Ncube, Pierre Obas, and Walker used stolen personal and business identities, or created false business identities, to apply to NDC for small business loans through the CT Boost and Flex programs,” According to the DOJ in a press release.
Several of the offenses could lead to lengthy prison sentences.
“The indictment charges each of the five defendants with one count of conspiracy to commit wire fraud, one count of conspiracy to commit money laundering, and multiple counts of wire fraud. Each of these charges carries a maximum term of imprisonment of 20 years,” according to the DOJ press release.
The DOJ also listed charges for each of the five defendants with one or more counts of making illegal monetary transactions, which carries a maximum sentence of 10 years for each count.
“Mycall Obas and Pierre Obas are also charged with aggravated identity theft, which carries a mandatory term of imprisonment of two years,” the DOJ wrote in the release.
