Keily Nunez, COVID-19 Loan Fraud, New York 2021

Grimy Times has learned that Keily Nunez, a former JetBlue Airways employee, has pleaded guilty to conspiracy to commit wire fraud in connection with false statements made to obtain COVID-19 loans.

Nunez, 38, submitted loan applications to the Small Business Administration (SBA) under the Economic Injury Disaster Loan (EIDL) program, claiming that his business, FI USA Consulting LLC, had 42 employees and gross revenues of $672,137 for the relevant period.

However, New York Department of Labor records showed that FI USA never reported having any employees, and Internal Revenue Service records revealed that FI USA never filed a tax return since its formation in 2017.

According to court documents, Nunez and his co-conspirators applied for EIDL loans for eleven separate entities, making false representations about the number of employees and gross revenues associated with each entity.

The SBA approved approximately $1.5 million in loans, which were deposited into the defendants' bank accounts. However, instead of using the relief funding for ongoing business expenses, the defendants withdrew hundreds of thousands of dollars in cash from their bank accounts.

Nunez faces up to 20 years in prison and has agreed to forfeit the fraudulently obtained loan funds. The case is being handled by the Office's Business and Securities Fraud Section.

Breon Peace, United States Attorney for the Eastern District of New York, and Ricky J. Patel, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), announced the guilty pleas.

The Coronavirus Aid, Relief and Economic Security (CARES) Act expanded EIDL to provide economic support to help offset the temporary loss of revenue experienced by businesses due to the COVID-19 pandemic.

Nunez and his co-conspirators fleeced the government to the tune of over $1.5 million, taking advantage of programs designed to keep small businesses afloat during a time of unprecedented economic volatility.

When sentenced, all defendants face up to 20 years in prison and have agreed to forfeit the fraudulently obtained loan funds.

Source: https://www.justice.gov/usao-edny/pr/former-jetblue-employee-pleads-guilty-covid-19-loan-fraud