Monroe County Man Charged With Committing Over $2.2 Million In Covid-19 Pandemic Fraud
Summary
Brian J. Albelli, 45, of Stroudsburg, Pennsylvania, formerly of Deerfield Beach, Florida, was charged in a criminal information on July 27, 2023 with wire fraud and money laundering. The information alleges that Albelli filed approximately 20 fraudulent applications for PPP loans and Economic Injury and Disaster Loans on behalf of corporate entities in Pennsylvania and Florida that had no actual business operations and reported inflated revenues and employee headcount. The applications allegedly included a forged IRS income tax return and forged federal employment tax documents. Albelli allegedly obtained in excess of approximately $2,200,000 in PPP and EIDL funds and spent them on boats, automobiles, real estate and other personal expenses, and is charged with money laundering for concealing the proceeds.
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Full text
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Brian J. Albelli, age 45, of Stroudsburg, Pennsylvania, and formerly of Deerfield Beach, Florida, was charged in a criminal information on July 27, 2023, with wire fraud and money laundering. According to United States Attorney Gerard M. Karam, the information alleges that Albelli owned and operated multiple corporate entities in Pennsylvania and Florida. Albelli allegedly filed approximately 20 fraudulent applications for pandemic stimulus funds, including under the Payment Protection Program (PPP), and for Economic Injury and Disaster Loans (EIDLs). The applications allegedly submitted by Albelli were filed on behalf of corporate entities that did not, in fact, have actual business operations, and that bore inflated revenues and employee headcount, and nonexistent gross receipts and costs of goods sold. The applications also included a forged IRS income tax return, and forged federal employment tax documents. Albelli allegedly obtained in excess of approximately $2,200,000 in PPP and EIDL funds, for himself and his family members, through filing the fraudulent applications. Instead of using the funds on business expenses, Albelli allegedly used them on purchasing boats and automobiles, real estate, retail shopping, and other personal expenses. Albelli also is charged with committing money laundering by concealing the fraudulent proceeds of his crimes. 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. 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 Internal Revenue Service’s Criminal Investigations. Assistant U.S. Attorneys Phillip J. Caraballo and Sean Camoni are prosecuting the case. The maximum penalties under federal law for both charges are 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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