U.S. Department of Labor OIG, Boston Man Pleads Guilty to Fraudulently Obtaining COVID-Relief Funds (USAO D-MA 09/18/2024) (2024-09-20)

Summary

A September 18, 2024 press release from the U.S. Attorney's Office for the District of Massachusetts announcing that Robert Platt Jr. pleaded guilty to one count of wire fraud and one count of making false statements in connection with the Paycheck Protection Program (PPP). The release states that Platt was charged and arrested in February 2024, together with members and associates of the Heath Street Gang. In April 2021, according to the release, Platt submitted a PPP loan application with false statements about the purported business's 2019 gross income and the purpose of the loan, supported by false tax records, and received approximately $20,833. U.S. District Court Judge Myong J. Joun scheduled sentencing, and Assistant U.S. Attorneys Sarah Hoefle and Lucy Sun are prosecuting.

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Full text

PRESS RELEASE



Boston Man Pleads Guilty to
Fraudulently Obtaining COVID-
Relief Funds
Wednesday, September 18, 2024


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

BOSTON – A Boston man pleaded guilty today in federal court in Boston to fraud and
false statements charges in connection with a scheme to fraudulently obtain pandemic-
related relief funds from the Paycheck Protection Program (PPP) made available under
the Coronavirus Aid, Relief, and Economic Security Act.

Robert Platt Jr., 45, pleaded guilty to one count of wire fraud and one count of making
false statements. U.S. District Court Judge Myong J. Joun scheduled sentencing for Dec.
18, 2024. Platt was charged and arrested in February 2024 along with over 40 Heath
Street Gang members/associates, who were charged with racketeering conspiracy, drug
trafficking, firearms charges, and financial frauds, including COVID-related fraud.

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) created a temporary
loan program directed at small businesses called the Paycheck Protection Program
(PPP). PPP loans were processed by private financial institutions and fully guaranteed by
the U.S. Small Business Administration. If the small business used the loan funds 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.

In April 2021, Platt submitted a fraudulent PPP loan application on behalf of his
purported business. The application contained multiple false statements, including false
representations regarding the purported business’s total gross income in 2019 and the
purpose of the loan. Platt also submitted false tax records in support of his loan
application. Based on the fraudulent application, Platt received approximately $20,833,
which he then spent on non-business-related expenses.
The charge of wire fraud provides for a sentence of up to 20 years in prison, up to three
years of supervised release and a fine of up to $250,000 or twice the gross gain or loss
from the offense. The charge of making false statements provides for a sentence of up
to five years in prison, up to three years of supervised release and a fine of up to
$250,000. Sentences are imposed by a federal district court judge based upon the U.S.
Sentencing Guidelines and statutes which govern the determination of a sentence in a
criminal case.

Acting United States Attorney Joshua S. Levy; Boston Police Commissioner Michael Cox;
Jonathan Mellone, Special Agent in Charge of Department of Labor, Office of Inspector
General; and Harry T. Chavis Jr, Special Agent in Charge of the Internal Revenue Service
Criminal Investigations made the announcement today. Assistant U.S. Attorneys Sarah
Hoefle and Lucy Sun of the Organized Crime & Gang Unit are prosecuting the case.

This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF)
operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal
organizations that threaten the United States using a prosecutor-led, intelligence-driven,
multi-agency approach. Additional information about the OCDETF Program can be
found at https://www.justice.gov/OCDETF.

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.

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
(NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form
at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

Updated September 18, 2024

Topic
CORONAVIRUS
Component
USAO - Massachusetts


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