Source: Office of United States Attorneys
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, today announced that a federal grand jury in New Haven has returned a 20-count indictment charging MYCALL OBAS, 42, of Danbury, MBALI NCUBE, 35, of Danbury, PIERRE OBAS, 49, of Danbury, TERESA VARGAS, 43, of Hartford, and STEPHEN WALKER, 30, of New Canaan, with offenses related to fraudulent small business loan applications in Connecticut and Washington.
The indictment was returned on May 14, 2025. Mycall Obas, Ncube, Pierre Obas, and Vargas were arrested on May 15, and Walker was arrested today. Each has entered a plea of not guilty and is released on bond pending trial.
According to the indictment, the National Development Council (“NDC”), now known as Grow America, was a not-for-profit lender that provided capital to small businesses, including through state-sponsored small business loan programs. The Connecticut Small Business Boost Fund (“CT Boost”) was an economic initiative supported by the Connecticut Department of Economic and Community Development that connects Connecticut small businesses and non-profits with support services, including access to flexible funding for capital expenditures. The Small Business Flex Fund (“Flex”) was an economic initiative supported by the Washington State Department of Commerce that connected Washington state small businesses and nonprofits with support services, including access to flexible funding for capital expenditures. NDC worked with CT Boost and Flex to provide loan funding to small businesses in Connecticut and Washington, respectively.
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. In connection with the loan applications, they created and submitted false business records, including fraudulent certificates of organization, false income statements, false balance sheets, and false tax returns. Vargas, who was a contractor for NDC and responsible for processing and underwriting small business loan applications, processed some of the fraudulent loan applications and submitted them to NDC for approval. She also specifically requested to be the loan processor on certain loan applications submitted by her co-conspirators in order to further the scheme.
It is alleged that the co-conspirators applied for and obtained 12 loans totaling more than $2 million through this scheme.
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. The indictment also charges each of the five defendants with one more counts of making illegal monetary transactions, an offense that carries a maximum term of imprisonment of 10 years on each count. Mycall Obas and Pierre Obas are also charged with aggravated identity theft, which carries a mandatory term of imprisonment of two years.
U.S. Attorney Sullivan stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation with the assistance of the Internal Revenue Service – Criminal Investigation Division, and the Meriden and Danbury Police Departments. The case is being prosecuted by Assistant U.S. Attorney Stephanie T. Levick.