December 7, 2021

Tomer Aiderapp

Consummate Business Technicians

Stoughton Man Indicted on Bank and Wire Fraud Scheme Related to COVID-19 Pandemic | USAO-MA

BOSTON – A Stoughton guy was indicted yesterday in relationship with his alleged involvement in a fraudulent scheme to obtain COVID-19-relevant small business loans from many fiscal institutions.

Patrick Joseph, 39, was indicted on just one rely every single of wire fraud, financial institution fraud and conspiracy to dedicate wire fraud and financial institution fraud. Joseph will surface in federal court in Boston at a afterwards date. 

The Coronavirus Assist, Reduction, and Economic Stability Act (CARES Act) established a short term personal loan system directed at smaller businesses known as the Paycheck Defense Program (PPP). Impartial contractors have been qualified to apply for PPP loans, which have been processed by non-public economical institutions and entirely assured by the U.S. Little Company Administration. If an independent contractor applied the loan cash for authorised applications, these types of as payroll, the bank loan could be forgiven by the monetary institution and paid for by the U.S. Modest Enterprise Administration.

In accordance to the indictment, Joseph participated in a scheme that received about $220,000 in proceeds by fraudulent PPP personal loan programs submitted between April 2020 and April 2021. Joseph and a co-conspirator allegedly submitted 12 fraudulent PPP financial loan purposes, both in their individual names and in the names of other folks, at quite a few economic establishments. It is also alleged that Joseph and his co-conspirator gained kickback payments from men and women on whose behalf they submitted fraudulent PPP bank loan purposes.

The cost of financial institution fraud and conspiracy to dedicate lender fraud provide for a sentence of up to 30 many years in prison, up to 5 yrs of supervised launch, a great of up to $1 million or two times the gross obtain or reduction, whichever is greater, and forfeiture. The charge of wire fraud and conspiracy to dedicate wire fraud supply for a sentence of up to 20 many years in jail, up to three decades of supervised release, a fine of up to $250,000 or two times the gross achieve or reduction, whichever is higher, and forfeiture. Sentences are imposed by a federal district court docket judge based mostly on the U.S. Sentencing Suggestions and other statutory aspects.

Performing United States Legal professional Nathaniel R. Mendell and Frederick J. Regan, Exclusive Agent in Charge of the U.S. Solution Company, Boston Field Business produced the announcement. Worthwhile support in the investigation was presented by the U.S. Postal Services, Massachusetts Condition Law enforcement and the Boston Police Department. Assistant U.S. Legal professional Christopher J. Markham, of Mendell’s Securities, Fiscal & Cyber Fraud Device, and Assistant U.S. Attorney Philip C. Cheng, of Mendell’s Narcotics & Dollars Laundering Unit, are prosecuting the situation.

On May 17, 2021, the Legal professional Typical proven the COVID-19 Fraud Enforcement Task Drive to marshal the methods of the Department of Justice in partnership with organizations across govt to enhance efforts to battle and avoid pandemic-relevant fraud. The Process Pressure bolsters initiatives to look into and prosecute the most culpable domestic and global legal actors and assists companies tasked with administering reduction plans to avert fraud by, between other approaches, augmenting and incorporating present coordination mechanisms, identifying methods and tactics to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement initiatives. For much more info on the Department’s reaction to the pandemic, remember to stop by https://www.justice.gov/coronavirus.

Everyone with information and facts about allegations of attempted fraud involving COVID-19 can report it by contacting the Section of Justice’s Nationwide Center for Catastrophe Fraud (NCDF) Hotline at 866-720-5721 or through the NCDF World-wide-web Grievance Type at: https://www.justice.gov/catastrophe-fraud/ncdf-disaster-complaint-kind.

The information contained in the indictment are allegations. The defendant is presumed innocent unless of course and till demonstrated guilty past a realistic doubt in a courtroom of law.