FARMINGDALE – Two former Monmouth County residents have been indicted for allegedly obtaining about $3.75 million in federal pandemic-related loans, officials said.
Jean Rabbitt, 52, and Kevin Aguilar, 52, both of Sherman, Texas, and both previously of Farmingdale, are each charged by indictment with: one count of conspiracy to engage bank fraud; seven counts of bank fraud; one count of conspiracy to engage in wire fraud; three counts of wire fraud; conspiracy to engage in monetary transactions in property derived from specified unlawful activity and one count of engaging in monetary transactions in property derived from specified unlawful activity; and one count of aggravated identity theft. Rabbitt is additionally charged with one count of making a false statement in a loan application.
On March 29, 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was enacted to provide emergency financial assistance to millions of Americans suffering the economic effects caused by the COVID-19 pandemic
According to officials, Rabbitt and Aguilar submitted seven fraudulent PPP loan applications on behalf of four businesses that Rabbitt owned or controlled. On those applications, they made multiple false statements, at least one of which was submitted to a Federal Home Loan Bank member. The PPP loans were approved by leaners totaling $3.33 million, and transmitted those funds to Rabbitt’s businesses, officials said.
Additionally, Rabbitt and Aguilar submitted fake applications to the U.S. Small Business Administration (SBA) under the federal Economic Injury Disaster Loan (EIDL) program. Based on false statements in those applications, the SBA approved EIDLs to three of Rabbitt’s businesses, totaling about $447,000.
After receiving the funds, Rabbitt and Aguilar transferred them to other businesses that Aguilar created to give the false appearance that the PPP and EIDL funds were being used for legitimate purposes. They then proceeded to use the funds for personal expenses.
Officials said Rabbitt and Aguilar engaged in identity theft, by submitting an EIDL application using the name and identifying information of an individual who did not authorize the use of that information.
Rabbitt is also charged with making a false statement on a loan application, including with respect to her gross monthly income, in order to buy a new truck from a Monmouth County car dealership.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.