Two Sentenced for Laundering Over $700K Targeting NJ Resident and SBA Loans

Sentences stem from a business email scam involving a Bergen County victim and misuse of COVID-19 relief funds, as part of a federal fraud strike force crackdown.

NEWARK, NJ — Two California men have been sentenced to federal prison terms for their roles in a money laundering conspiracy that defrauded a Bergen County resident and misused funds from the Small Business Administration’s (SBA) Economic Injury Disaster Loan (EIDL) program, according to U.S. Attorney Alina Habba.

Eric Bullard, 62, of Los Angeles, was sentenced to 37 months in prison, while Anthony Hannah, 61, of Moreno Valley, received a 33-month sentence. Both men pleaded guilty to conspiracy to commit money laundering before U.S. District Judge Madeline Cox Arleo, who also ordered three years of supervised release for each and restitution payments totaling $705,400. The court further imposed forfeiture penalties of $611,395 for Bullard and $375,400 for Hannah.

The charges arise from a multi-faceted fraud operation that included a business email compromise (BEC) in June 2020. In that incident, a co-conspirator allegedly posed as a law firm involved in a real estate transaction with Victim-1, a New Jersey resident, and tricked the individual into wiring approximately $560,000 to a bank account controlled by Bullard. After receiving the funds, Bullard withdrew cash and funneled proceeds to other conspirators, including approximately $230,000 sent to an account controlled by Hannah.

The men also fraudulently secured federal COVID-19 relief loans through the SBA’s EIDL program. Bullard received $143,100 in July 2020 under the guise of operating a pharmacy company in Colorado, while Hannah received $145,400 using a fake business in Idaho, later transferring over $51,000 to Bullard’s account.

The case was investigated by the FBI’s Woodland Park Office, under the direction of Acting Special Agent in Charge Terence G. Reilly, and prosecuted by Assistant U.S. Attorney Farhana C. Melo of the Economic Crimes Unit in Newark.

The investigation is part of the District of New Jersey COVID-19 Fraud Enforcement Strike Force, one of five national task forces formed by the U.S. Department of Justice to identify and prosecute large-scale fraud tied to pandemic relief funds. The strike force utilizes data-driven investigations and interagency collaboration to uncover fraud by domestic and international criminal networks.

The public is encouraged to report COVID-19 fraud through the National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at justice.gov/disaster-fraud.