Two men were arrested and charged in connection with a scheme to use stolen identities to fraudulently obtain $450,000 in disaster loans from the U.S. Small Business Administration and launder the funds.

Darwyn Joseph, 24, of Lawrence, and Ramon Joseph Cruz, 24, of Methuen, were each charged last week in Boston federal court with one count of conspiracy to commit wire fraud and one count of aggravated identity theft, according to a statement from the U.S. attorney’s office.

According to charging documents, the defendants were involved in a conspiracy to use stolen identity information of U.S. citizens to apply for SBA Economic Injury Disaster Loans.

Joseph and Cruz used the stolen information to open fraudulent bank accounts, according to the statement, which were then linked to other fraudulent bank accounts set up to receive the SBA funds.

After Joseph and Cruz received in the mail some of the debit cards associated with the fraudulent bank accounts that held the SBA funds, they then laundered those funds by using them to purchase large numbers of iPhones for resale, according to the statement. Some funds were also allegedly wired to the Dominican Republic in connection with the scheme.

Prosecutors allege that over $452,200 in EIDL funds were fraudulently obtained in connection with this scheme. Approximately $250,000 of this money was used to purchase iPhones in Massachusetts and New Hampshire.

The charge of conspiracy to commit wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss from the offense. The charge of aggravated identity theft carries a mandatory two-year sentence that must run consecutively to any other sentence imposed, up to one year of supervised release and a fine of up to $250,000.