Stoughton man pleads guilty to fraudulently obtaining pandemic payroll loans
BOSTON – A Stoughton man pleaded guilty in federal court Thursday to fraudulently obtaining COVID-19-related small-business loans from financial institutions, the U.S. attorney's office said.
Patrick Joseph, 41, pleaded guilty to one count each of wire fraud, bank fraud and conspiracy to commit wire fraud and bank fraud, prosecutors said.
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) created a temporary loan program directed at small businesses called the Paycheck Protection Program. Independent contractors were eligible to apply for loans, which were processed by private financial institutions and fully guaranteed by the U.S. Small Business Administration. If an independent contractor used the loan money for approved purposes, such as payroll, the loan could be forgiven by the financial institution and paid for by the U.S. Small Business Administration.
Joseph participated in a scheme that obtained more than $220,000 through fraudulent loan applications submitted between April 2020 and April 2021, prosecutors said. He was indicted by a federal grand jury in November 2021.
Joseph and co-conspirator Yves Montima, of Stoughton, submitted 12 fraudulent PPP loan applications, both in their own names and on behalf of others, at several financial institutions. The applications claimed independent contractor income that did not exist and included falsified tax documents, prosecutors said.
In addition to receiving the proceeds from the loans submitted in their names, Joseph and Montima received kickback payments from people on whose behalf they submitted fraudulent PPP loan applications.
In November 2021, Montima pleaded guilty to one count of bank fraud conspiracy and was sentenced in September 2023.
More: Stoughton man sentenced for Paycheck Protection Program bank fraud conspiracy
U.S. District Court Chief Judge F. Dennis Saylor IV scheduled Patrick's sentencing for June 20.
The charge of bank fraud and conspiracy to commit bank fraud carry a sentence of up to 30 years in prison, up to five years of supervised release, a fine of up to $1 million or twice the gross gain or loss, whichever is greater, and forfeiture. The charge of wire fraud and conspiracy to commit wire fraud provide for a sentence of up to 20 years in prison, up to three years of supervised release, a fine of up to $250,000 or twice the gross gain or loss, whichever is greater, and forfeiture.
This article originally appeared on The Patriot Ledger: Stoughton man pleads guilty to scam involving federal PPP loans
