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Bergen County Man Admits Fraudulently Obtaining Cares Act Loan and Laundering the Proceeds of his Fraud

Summary

A press release of the U.S. Attorney's Office for the District of New Jersey, dated Friday, June 14, 2024, announcing that George Leguen of Paramus pleaded guilty on June 12, 2024, before U.S. District Judge Madeline Cox Arleo to an information charging one count of wire fraud and one count of money laundering. According to documents filed and statements made in court, from August 2020 through January 2021 Leguen applied to the Small Business Administration for an Economic Injury Disaster Loan for a business Leguen owned, submitting false employee counts, revenue figures and fraudulent federal tax returns. The release states that Leguen received $149,900 and diverted the proceeds for personal gain. Wire fraud carries a maximum penalty of 20 years in prison.

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“Bergen County Man Admits Fraudulently Obtaining Cares Act Loan and Laundering the Proceeds of his Fraud.” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2024-06-18-bergen-county-man-admits-fraudulently-obtaining-cares-act-l-d3c16198db/, SHA-256 f09c0755f1fefc8a43001deee741078ede542883cb43faf1f5a4e1623fd05425.

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PRESS RELEASE



Bergen County Man Admits
Fraudulently Obtaining Cares Act
Loan and Laundering the
Proceeds of his Fraud
Friday, June 14, 2024

For Immediate Release
U.S. Attorney's Office, District of New Jersey

NEWARK, N.J. – A Bergen County, New Jersey, man admitted that he fraudulently
obtained an Economic Injury Disaster Loan (EIDL) and laundered the loan proceeds, U.S.
Attorney Philip R. Sellinger announced today.

George Leguen, 51, of Paramus, New Jersey, pleaded guilty on June 12, 2024, before U.S.
District Judge Madeline Cox Arleo in Newark federal court to an information charging
him with one count of wire fraud and one count of money laundering.

According to documents filed in this case and statements made in court:

From August 2020 through January 2021, Leguen participated in a scheme to defraud to
fraudulently receive COVID-19 emergency relief funds meant for distressed small
businesses under the EIDL program. Leguen applied to the Small Business
Administration (SBA) on behalf of a business he owned and controlled. He submitted
fraudulent information in support of that application, including the number of
employees, annual gross revenue figures, and fraudulent federal tax returns. Leguen
received $149,900. After receiving the fraudulent funds, he diverted the proceeds for his
personal gain.

The charge of wire fraud carries a maximum penalty of 20 years in prison and a
maximum fine of $250,000 or twice the gross gain to the defendant or gross loss to the
victim, whichever is greatest. The charge of money laundering carries a maximum
penalty of 10 years in prison and a maximum fine of $250,000, or twice the value of the
monetary instrument or funds involved in the laundering offense, whichever is greater.
Sentencing is scheduled for Dec. 19, 2024.

U.S. Attorney Sellinger credited special agents and task force officers of IRS – Criminal
Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan in
Newark: the Drug Enforcement Administration, under the direction of Special Agent in
Charge Cheryl Ortiz of the New Jersey Field Division; special agents of the U.S. Secret
Service, under the direction of Special Agent in Charge Aaron Hatley, Newark Field
Office; and special agents of the U.S. Department of Labor – Office of the Inspector
General, under the direction of Special Agent in Charge Jonathan Mellone, Northeast
Region, with the investigation leading to the guilty plea.

The District of New Jersey COVID-19 Fraud Enforcement Strike Force is one of five strike
forces established throughout the United States by the U.S. Department of Justice to
investigate and prosecute COVID-19 fraud. The strike forces focus on large-scale, multi-
state pandemic relief fraud perpetrated by criminal organizations and transnational
actors. The strike forces are interagency law enforcement efforts, using prosecutor-led
and data analyst-driven teams designed to identify and bring to justice those who stole
pandemic relief funds.

Anyone with information about allegations of attempted fraud involving COVID-19 can
report it by calling the Department of Justice’s National Center for Disaster Fraud
Hotline at 866-720-5721 or via the NCDF Web Complaint Form
at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

The government is represented by Assistant U.S. Attorneys Fatime Meka Cano and Aja
Espinosa of the Economic Crimes Unit in Newark.

leguen.information.pdf
Updated June 14, 2024

Topic
CORONAVIRUS


Component
USAO - New Jersey
Press Release Number: 24-233


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