Boston Man Indicted for PPP Fraud, $382K Check Theft

BOSTON – In a stunning turn of events, Lonnie Smith-Matthews, 33, has been slapped with serious charges by a federal grand jury for his alleged involvement in a complex scheme that defrauded the Paycheck Protection Program (PPP) and stole significant funds from both the government and private entities. The defendant now faces a litany of charges, including wire fraud, theft of government funds, bank fraud, and money laundering.

According to the latest reports, Smith-Matthews is accused of obtaining two fraudulent PPP loans totaling $128,000 by falsely inflating his business income and falsely claiming to own a legitimate company. The reality was that he operated no such business. His deceitful actions came to light in June 2025 when federal authorities moved swiftly to arrest him.

In an additional layer of deception, the defendant is said to have altered and forged a U.S. Treasury tax refund check worth $150,000, making it payable to a defunct clothing company he claimed to own. The original recipient of the check was a North Carolina couple who had paid their taxes in full. Smith-Matthews’ scheme did not end there; he is also charged with depositing a $232,000 check stolen from a New York law firm, which he had similarly altered and forged.

The U.S. Attorney’s Office has outlined the potential penalties for Smith-Matthews’ crimes: theft of government funds carries up to 10 years in prison and a fine of up to $250,000; wire fraud up to 20 years in prison, three years supervised release, and a fine of up to $250,000; bank fraud up to 30 years in prison, five years supervised release, and a fine of up to $1 million; and money laundering up to 20 years in prison, three years supervised release, and a fine of $500,000.

U.S. Attorney Leah B. Foley and her team, along with the Internal Revenue Service Criminal Investigation, Treasury Inspector General for Tax Administration, and U.S. Postal Inspection Service’s Boston Division, have all been instrumental in bringing this case to light. Assistant U.S. Attorney Kriss Basil is leading the prosecution.

As per usual protocol, the details contained in the charging documents are merely allegations at this stage. Lonnie Smith-Matthews is presumed innocent until proven guilty beyond a reasonable doubt in court.

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