Upper Gwynedd Township Police. Photo by James Short.
Upper Gwynedd Police allege defendant used another person’s identity to secure SBA funds for defunct business, spending the money on personal expenses
A Towamencin man is accused of using another person’s identity to fraudulently obtain a $150,000 federal COVID-19 disaster loan, then spending the money on personal expenses.
Police said Clifford Washington, 43, of the Forge Gate Apartments on the 1100 block of Snyder Road, was charged Oct. 22 with nine felony and multiple misdemeanor offenses in connection with alleged conduct that occurred between July 2020 and December 2021 on the 800 block of Jays Drive in Upper Gwynedd.
Washington is charged with felony counts of dealing in proceeds of unlawful activity, theft by failing to make required deposit of funds, theft by deception, theft by unlawful taking, three counts of forgery, identity theft, deceptive business practices-making a false or misleading written statement, and receiving stolen property, according to charging documents.
He also faces three counts each of misdemeanor unsworn falsification to authorities and unsworn falsification by forging documents, along with misapplication of entrusted financial property and three counts of tampering with records, according to court documents.
According to the criminal complaint, a victim contacted police in April 2024 to report possible fraud involving a $150,000 Small Business Administration loan. The victim told investigators that during the 2020 pandemic, they discussed opening a nail salon called Pamper Me PLZ with Washington, who offered to help apply for a business loan.
Police said the victim provided Washington photos of their Social Security card, driver’s license, and bank account information.
Investigators said the victim later learned they were denied a home loan due to a defaulted SBA loan under the business name Yetzirah — a company they had never owned or authorized. Police said Washington admitted to the victim that he had obtained the loan and promised to repay it, claiming he “forgot” about the debt.
A subpoenaed SBA file showed the Economic Injury Disaster Loan was approved in January 2021 and deposited into a Wells Fargo account belonging solely to Washington, police said. The account, according to the complaint, was emptied within months and showed transactions for food, entertainment, and car rentals rather than business use.
Investigators said federal and state records linked the loan and business filings to Washington’s phone number, IP address, and email. The complaint also alleges Washington revived his defunct Delaware business, Yetzirah Corp, in 2020 using forged digital signatures and documents bearing the victim’s name.
Police allege Washington used the alias “David Banks” on some government filings, and that handwriting on those documents matched his own.
According to the complaint, the victim never received any money from Washington or the SBA and was left responsible for the defaulted loan.
Washington was charged following a police interview in which he initially denied wrongdoing before requesting an attorney, the affidavit states.
He is free on $150,000 unsecured bail, set by on-call Magisterial District Judge Todd N. Barnes. A preliminary hearing is set for Jan. 8, 2026 before Magisterial District Judge Suzan Leonard.
All suspects and defendants are innocent until proven guilty. This story was compiled using public court records.
