SCRANTON, Pa. — A Monroe County man is facing a maximum of 20 years in jail after allegedly filing 20 fraudulent applications for pandemic stimulus funds, totaling $2.2 million.
The United States Attorney's Office for the Middle District of Pennsylvania announced Monday that Brian J. Albelli, 45, from Stroudsburg, Pa. was charged with wire fraud and money laundering.
According to United States Attorney Gerard M. Karam, Albelli allegedly owned and operated multiple corporate entities in Pennsylvania and Florida. He reportedly 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 have actual business operations, had inflated revenues and an inflated employee headcount, nonexistent gross receipts and costs of goods sold.
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 purchased boats and cars, real estate, retail shopping and other personal expenses. He is also 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 the 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 obligations.
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 the government to enhance efforts to combat and prevent pandemic-related fraud.
The maximum penalties under federal law for both charges are 20 years of imprisonment, a term of supervised release following imprisonment, and a fine.
