Four charged with pandemic relief fraud, one accused of spending funds at a casino
Federal prosecutors in Boston say four Massachusetts residents falsely claimed to own businesses hurt by COVID-19 to obtain Paycheck Protection Program loans or a disaster grant.
BOSTON — Four Massachusetts residents have been indicted on federal wire fraud charges, accused of obtaining pandemic relief money by falsely claiming to own businesses hurt by COVID-19, the U.S. attorney's office in Boston said Thursday.
Each faces one count of wire fraud. The defendants are Jonathan Arroyo, 43, of Boston; Daquan Dooley, 37, of Attleboro; Demetrous Thomas, 36, of Acushnet; and Gianni Williams Johnson, 28, of Boston.
Arroyo, Dooley and Thomas were arrested and appeared in federal court in Boston, prosecutors said. Williams Johnson is being held on an unrelated matter in Suffolk Superior Court and will appear in federal court at a later date.
According to charging documents, Arroyo, Thomas and Williams Johnson each applied for Paycheck Protection Program loans, claiming to own businesses harmed by the pandemic and submitting false tax information to back up the applications. Each received a forgivable loan of more than $20,000, prosecutors said. Prosecutors allege none of the three owned a business, the tax information was never filed with the IRS, and bank records show none of the money went to payroll.
Dooley is accused of applying under the Economic Injury Disaster Loan program, claiming he owned a pandemic-affected business and would use the money for expenses such as payroll and rent. He received a $10,000 advance, a grant that did not have to be repaid. Prosecutors said bank records show he spent thousands of dollars of the money at a casino and none on business expenses.
Wire fraud carries a maximum sentence of 20 years in prison.
The charges are allegations, and the defendants are presumed innocent unless proven guilty.
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