Union County Man Admits COVID-19 Relief Program Fraud

Summary

A Justice Department release published November 26, 2024 states that Joseph McKeon pleaded guilty before U.S. District Judge Julien Xavier Neals in Newark federal court to an indictment charging one count of wire fraud and one count of money laundering. It says that from February 2021 through February 2022, McKeon submitted fraudulent PPP loan and forgiveness applications for $900,000 on behalf of a New Jersey company. The release states that the wire fraud charge carries a maximum penalty of 20 years in prison and a maximum fine of $250,000. It says sentencing is scheduled for April 1, 2025, and that U.S. Attorney Philip R. Sellinger announced the plea.

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NEWARK, N.J. – A Union County, New Jersey, man today admitted his role in a scheme to fraudulently obtain a Payroll Protection Program (PPP) loan, U.S. Attorney Philip R. Sellinger announced.
Joseph McKeon, aka “Jay McKeon,” 54, of Westfield, New Jersey, pleaded guilty before U.S. District Judge Julien Xavier Neals in Newark federal court to an indictment 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 February 2021 through February 2022, McKeon submitted fraudulent PPP loan and forgiveness applications for $900,000 on behalf of a New Jersey company he owned. In support of those applications, McKeon lied about the number of employees the business employed and the income the employees earned. McKeon also submitted forged documents, including fake payroll information, bank statements, tax return documents. After the victim lender funded the loan, McKeon withdrew a significant amount of the loan proceeds as cash and made several large transfers between bank accounts, including one transfer for $315,504, that was sent to an Indiana title company.
The wire fraud charge 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 money laundering conspiracy count carries a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross gain to the defendant or loss to the victim, whichever is greatest. Sentencing is scheduled for April 1, 2025.
U.S. Attorney Sellinger credited special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan; special agents of the Social Security Administration, Office of the Inspector General, Boston-New York Field Division, under the direction of Special Agent in Charge Amy Connelly; and special agents of the U.S. Attorney’s Office for the District of New Jersey, under the direction of Special Agent in Charge Thomas Mahoney, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Benjamin D. Bleiberg of the Economic Crimes Unit in Newark.
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
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