BURLINGTON, VT – Leon Delima, 35, of Burlington, Vermont, is facing significant prison time after admitting today to a two-pronged scheme involving fraudulently obtained COVID-relief funds and the illegal possession of a firearm. Delima pleaded guilty before U.S. District Court Judge Christina Reiss to wire fraud, making false statements, and being a felon in possession of a firearm.
The scheme began in the spring of 2021, when Delima concocted a plan to steal from the U.S. Small Business Administration’s (SBA) Paycheck Protection Program (PPP). He successfully secured a $17,833 loan by falsely claiming to operate a marketing consulting business with an annual income of $85,600. The truth? No such business existed. Delima wasted little time, blowing the stolen funds on ‘consumer goods, life expenses and non-business items’ – including, notably, high-end sneakers, according to court documents. Not satisfied, Delima attempted a second SBA loan in July 2021, this time claiming a 45-employee pet-grooming operation generating $300,000 annually. That application was denied.
But the financial crimes weren’t Delima’s only offenses. On July 2, 2022, Delima – a previously convicted felon – was caught firing a handgun into the air while walking along North Avenue in Burlington. He then discarded the weapon before law enforcement could arrive. The brazen act adds a dangerous dimension to his already mounting legal troubles.
Delima now faces a maximum sentence of 20 years for wire fraud, 5 years for making false statements, and 15 years for being a felon in possession of a firearm. While the total possible sentence stretches to 40 years, a plea agreement recommends a sentence of 37 to 55 months. Judge Reiss will ultimately determine the sentence, considering federal guidelines and the U.S. Code.
Federal investigators from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Internal Revenue Service Criminal Investigations Division (IRS CID), and the Burlington Police Department worked together to build the case against Delima. Assistant U.S. Attorney Eugenia Cowles led the prosecution, with Sara Puls representing Delima as his public defender.
This case is part of the Department of Justice’s broader effort to combat COVID-19 fraud, spearheaded by the COVID-19 Fraud Enforcement Task Force. The DOJ urges anyone with information about pandemic-related fraud to report it to the National Center for Disaster Fraud Hotline at 866-720-5721 or through their online complaint form. The investigation also falls under Project Safe Neighborhoods, a collaborative program aimed at reducing violent crime by uniting law enforcement at all levels with the communities they serve. “
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Key Facts
- Agency: ATF
- Category: Fraud & Financial Crimes|Weapons
- Source: Official Press Release
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