Patrick Joseph, PPP Loan Fraud, Massachusetts 2024

BOSTON – A Stoughton man is facing serious federal charges after allegedly orchestrating a scheme to siphon over $220,000 from COVID-19 relief programs. Patrick Joseph, 39, was indicted yesterday on a slew of financial crimes related to the Paycheck Protection Program (PPP).

According to the indictment, Joseph and a co-conspirator allegedly submitted 12 fraudulent PPP loan applications between April 2020 and April 2021, using both their own names and those of others. The scheme targeted several financial institutions, exploiting the CARES Act’s provision for small business loans guaranteed by the U.S. Small Business Administration. The indictment further alleges that Joseph and his accomplice pocketed kickbacks from individuals for submitting applications on their behalf.

The PPP was designed to keep businesses afloat during the pandemic, offering forgivable loans to those who used the funds for legitimate purposes like payroll. Instead, Joseph allegedly treated it like a personal slush fund. He’s been indicted on one count each of wire fraud, bank fraud, and conspiracy to commit wire fraud and bank fraud. A court date in Boston has not yet been set.

If convicted, Joseph faces a hefty penalty. The bank fraud and conspiracy charges carry a potential sentence of up to 30 years in prison, along with up to five years of supervised release, a fine of up to $1 million (or twice the gross gain or loss, whichever is greater), and forfeiture of assets. The wire fraud and conspiracy charges could land him up to 20 years behind bars, plus three years of supervised release, a fine of up to $250,000 (or twice the gross gain or loss), and forfeiture.

Nathaniel R. Mendell, Acting United States Attorney, and Frederick J. Regan, Special Agent in Charge of the U.S. Secret Service, Boston Field Office, announced the indictment. The investigation received valuable assistance from the U.S. Postal Service, Massachusetts State Police, and the Boston Police Department. Christopher J. Markham and Philip C. Cheng, Assistant U.S. Attorneys, are prosecuting the case.

This case is part of a larger effort by the Department of Justice’s COVID-19 Fraud Enforcement Task Force, established by the Attorney General in May 2021, to combat pandemic-related fraud. Anyone with information regarding COVID-19 fraud is urged to report it to the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via their web complaint form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form. It’s crucial to remember that the details in the indictment are allegations, and Joseph is presumed innocent until proven guilty beyond a reasonable doubt.

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