⏱ 2 min read
Francesco Distefano, a 29-year-old suburban Chicago man, orchestrated a massive Covid-19 relief fraud scheme in 2020 and 2021, swindling the federal government out of more than $3.3 million in small business loans and grants. Distefano, along with co-defendant Sargis Urumieh, submitted false applications for Paycheck Protection Program (PPP) and Economic Injury Disaster Loan Program (EIDL) funds, exaggerating company operations and employee numbers. The pair used the ill-gotten gains to finance a life of luxury, including the purchase of high-end vehicles.
Distefano’s fraud spree didn’t stop at Covid-relief loans. He also collected over $37,500 in unemployment benefits from the state of Illinois, despite being employed and receiving loan proceeds. The funds were used to buy a Lamborghini Huracan, Maserati Ghibli, Land Rover Evoque SE, and Porsche 911, all of which were seized by law enforcement and forfeited to the government.
Distefano pleaded guilty to a federal wire fraud charge and was sentenced to six and a half years in federal prison. The sentence is a result of the U.S. Attorney’s Office for the Northern District of Illinois’ efforts to crack down on Covid-19 related fraud, led by United States Attorney Andrew S. Boutros.
The case highlights the ongoing issue of Covid-19 relief fraud, with the government working to identify and prosecute those who have taken advantage of the system. Distefano’s sentence serves as a warning to others who would attempt to exploit the system for personal gain.
Related Federal Cases
- Denae Sullivan Hit with 20 Fraud Counts in Anchorage · Alaska
- Bank Manager Accused of $200k Bank Fraud · Illinois
- Credit Card Con Artists Busted for $1.3M Bank Fraud Heist · Illinois
- Crystal Merritt Sentenced in WV Credit Card Fraud Ring · Illinois
- Chicago Men Indicted in Ohio Credit Card Fraud Ring · Illinois
📋 Key Facts
- Crime: Fraud & Financial Crimes
- Defendant: Illinois
- Location: IL
- Source: DOJ Press Release
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News