BOSTON – A Stouton man has been charged with felony criminal mischief for allegedly colluding with a number of financial institutions to obtain small business loans.
Patrick Joseph, 39, has been charged with one count of conspiracy to commit felony criminal mischief and one count of conspiracy to commit felony criminal mischief. Joseph will be arraigned in federal court in Boston later.
The CARES Act created a temporary loan program for small businesses, the PPP. Independent contractors are eligible to apply for PPP loans, which are fully guaranteed by the US Small Business Administration. If an independent contractor uses the loan fund for authorized purposes, such as payroll, the loan can be forgiven by the financial institution and paid off by the US Small Business Administration.
According to the indictment, Joseph was involved in a scheme that involved more than $ 220,000 in fraudulent PPP loan applications. The names of others, in many financial institutions. Joseph and his accomplice are also said to have received repayments from individuals who had applied for fraudulent PPPP loans.
Bank fraud and bank fraud are punishable by up to 30 years ‘imprisonment, up to five years’ probation, a fine of up to one million dollars, or more than double the total profit or loss. And extinction. Wire fraud and fraud are punishable by up to 20 years in prison, up to three years’ probation, up to $ 250,000 or twice the maximum profit or loss, whichever is greater and more. Penalties are subject to U.S. District Court decision and other legal circumstances.
US Secretary of State Nathaniel R. Mendel and Boston Field Office Frederick J. Regan, Special Representative of the Secretary of State for Foreign and Commonwealth Affairs, made the announcement. Useful assistance in the investigation was provided by the US Postal Service, Massachusetts State Police and the Boston Police Department. Mendel Security, US Assistant Attorney General Christopher J. Markham and US Attorney Philip C. Cheng are suing Mendel’s drug and money laundering unit.
On May 17, 2021, the Attorney General established the Covd-19 Fraud Task Force to increase the efforts of the Department of Justice in collaboration with government agencies to combat and prevent pandemic-related fraud. The task force will intensify its efforts to investigate and prosecute the most responsible domestic and international criminals, and will assist agencies responsible for administering aid programs by adding and including coordination mechanisms to prevent fraud, identifying resources and methods to identify fraudulent actors. Sharing and sharing information and insights from their plans, and pre-implementation efforts. For more information on the department’s response to the epidemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about the Covenant-19 fraud case should call the National Department of Justice (NCDF) at 866-720-5721 or the NCDF Web Complaint Form at https: // www. .justice.gov / disaster-fraud / ncdf-disaster-complaint-form.
The details of the case are allegations. Defendant is presumed innocent until proven guilty by a court of law, beyond reasonable doubt.