Federal authorities have charged five Connecticut residents with defrauding small business loan programs in Connecticut and Washington. The announcement was made by David X. Sullivan, United States Attorney for the District of Connecticut, and P.J. O’Brien, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation.
The indictment was returned on May 14, 2025, by a federal grand jury in New Haven. Those charged include Mycall Obas, 42; Mbali Ncube, 35; Pierre Obas, 49; Teresa Vargas, 43; and Stephen Walker, 30. All defendants have pleaded not guilty and are released on bond pending trial.
According to the indictment, the National Development Council (NDC), now known as Grow America, provided capital to small businesses through state-sponsored programs like the Connecticut Small Business Boost Fund (CT Boost) and the Small Business Flex Fund (Flex). These initiatives aimed to support small businesses with flexible funding for capital expenditures.
The accused allegedly used stolen or false identities to apply for loans through these programs. They submitted fraudulent documents such as certificates of organization and tax returns. Vargas, a contractor for NDC responsible for processing loan applications, is alleged to have processed some fraudulent applications herself.
It is claimed that over $2 million was obtained through this scheme via 12 loans.
Each defendant faces charges including conspiracy to commit wire fraud and money laundering, with each charge carrying a maximum imprisonment term of 20 years. They also face charges related to illegal monetary transactions with potential sentences of up to 10 years per count. Additionally, Mycall Obas and Pierre Obas are charged with aggravated identity theft which mandates a two-year prison term.
U.S. Attorney Sullivan emphasized that an indictment is not proof of guilt: "Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt."
The investigation involves the FBI with assistance from the IRS Criminal Investigation Division and local police departments in Meriden and Danbury. Assistant U.S. Attorney Stephanie T. Levick is prosecuting the case.
