Two California men have been given prison sentences for their roles in a money laundering scheme connected to internet-based fraud. The scheme targeted a law firm in New Jersey and involved fraudulently obtained loans from the U.S. Small Business Administration (SBA), according to U.S. Attorney Alina Habba.
Eric Bullard, 62, from Los Angeles, received a 37-month prison sentence, while Anthony Hannah, 61, from Moreno Valley, was sentenced to 33 months. Both men had earlier pled guilty before U.S. District Judge Madeline Cox Arleo on charges of conspiracy to commit money laundering.
Court documents revealed that in June 2020, Victim-1, a Bergen County, New Jersey resident, was advised by a New Jersey law firm on a real estate deal. The scheme involved business email compromise, a type of wire fraud targeting businesses or individuals in high-value transactions. Through social engineering or computer breach techniques, perpetrators spoof genuine email accounts to conduct unauthorized fund transfers to accounts under their control.
A co-conspirator spoofed the law firm's email and deceived Victim-1 into wiring approximately $560,000 to Bullard's account. Bullard then made cash withdrawals and transferred portions of the funds to co-conspirators, including around $230,000 to an account managed by Hannah.
Besides the proceeds from the business email compromise, Bullard and Hannah also laundered funds from the SBA's Economic Injury Disaster Loan (EIDL) program through fraudulent loan applications. Intended to assist small businesses affected by the COVID-19 pandemic, the EIDL program was misused by Bullard and Hannah. Bullard secured around $143,100 for a business bank account under his control, supposedly for a pharmacy in Colorado, while Hannah received $145,400 for a similar falsely represented business in Idaho. Hannah transferred about $51,395 to Bullard's account.
Beyond their prison terms, both men received an additional three years of supervised release and were ordered to pay $705,400 in restitution. Judge Arleo also ordered the forfeiture of $611,395 from Bullard and $375,400 from Hannah.
The investigation received contributions from FBI special agents in the Woodland Park Office, under Acting Special Agent in Charge Terence G. Reilly in Newark. Assistant U.S. Attorney Farhana C. Melo from the Economic Crimes Unit in Newark represented the government.
The case was part of the District of New Jersey COVID-19 Fraud Enforcement Strike Force's efforts, one of five teams across the U.S., focused on pandemic relief fraud by criminal organizations and transnational actors. The strike forces utilize interagency law enforcement with prosecutor-led teams to address pandemic relief fund theft.
For those with information on COVID-19-related fraud attempts, the Department of Justice’s National Center for Disaster Fraud Hotline is available at 866-720-5721, with online complaint submissions also accepted.
Defense Attorneys:
Bullard: Brandon Minde, Esq., Cranford, New Jersey
Hannah: Areeb Salim, Esq., Assistant Federal Public Defender, Newark
