Luzerne County Man Charged With Committing $350,000 In Covid-19 Pandemic Fraud

Summary

The United States Attorney's Office for the Middle District of Pennsylvania announced that Daniel Wasielewski was charged on July 28, 2023, in a criminal information with wire fraud. According to United States Attorney Karam, the information alleges that Wasielewski filed and assisted others in filing fraudulent applications for pandemic stimulus funds, including under the Payment Protection Program (PPP), for Economic Injury and Disaster Loans (EIDLs), and for Pandemic Unemployment Assistance (PUA) benefits. Wasielewski allegedly received approximately $350,000 in fraudulently-obtained funds and allegedly used them to purchase cryptocurrency and on other personal expenses. The maximum penalties under federal law for wire fraud are 20 years of imprisonment and a fine.

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SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Daniel Wasielewski, age 58, of Wilkes-Barre, Pennsylvania, was charged on July 28, 2023, in a criminal information with wire fraud.
According to United States Attorney Gerard M. Karam, the information alleges that Wasielewski filed and assisted others in filing fraudulent applications for pandemic stimulus funds, including under the Payment Protection Program (PPP), for Economic Injury and Disaster Loans (EIDLs), and for Pandemic Unemployment Assistance (PUA) benefits.  The PPP and EIDL applications allegedly submitted by Wasielewski and his confederates were filed on behalf of corporate entities that did not, in fact, have actual business operations, and that bore false revenues and other business information.  The applications also included forged IRS tax documents.
Wasielewski allegedly received approximately $350,000 in PPP, EIDL, PUA, and other fraudulently-obtained funds, for himself and others.  Instead of using the funds on business expenses, Wasielewski and others allegedly used them to purchase cryptocurrency and on other personal expenses.
The PPP and EIDL programs, both funded by the March 2020 CARES Act, were designed to help small businesses facing financial difficulties during the COVID-19 pandemic.  PPP funds were offered in forgivable loans, provided that certain criteria are met, including use of the funds for employee payroll, mortgage interest, lease, and utilities expenses.  EIDL funds are offered in low-interest rate loans, designated for specific business expenses, such as fixed debts, payroll, and business obligation.  The PUA program was created by the CARES Act, as part of the United States government’s efforts to mitigate the impact of the COVID-19 pandemic on the public’s health and economic well-being.  The PUA program was designed to provide unemployment benefits to individuals not eligible for regular unemployment compensation or extended unemployment benefits.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
The case was investigated by the United States Postal Inspection Service.  Assistant U.S. Attorneys Phillip J. Caraballo and Sean Camoni are prosecuting the case.
The maximum penalties under federal law for the charge of wire fraud is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine.  A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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